US EditionThe Federal Reserve wrestles with how many interest rate cuts to make and how fast
The Federal Reserve aims to lower borrowing costs amid a sharp hiring slowdown and moderate inflation, with expectations of up to five rate cuts by mid-2026, economic experts say.
- On September 17, the Federal Reserve lowered its key short-term interest rate by 0.25 percentage points to approximately 4.1%, marking the first decrease since December 2024.
- This cut follows slower hiring, a weaker job market, inflation above the Fed’s 2% target, and political pressure from President Trump for aggressive rate cuts.
- Economists expect the Fed to take a measured approach with three total rate cuts this year and will release updated economic projections after the meeting Wednesday.
- Experts say the rate cut’s immediate effect on consumers will be limited as mortgage and auto loan rates adjust gradually while credit card rates remain high.
- The rate cut signals a cautious recalibration to support price stability and employment amid persistent inflation and concerns about the Fed’s political independence.
51 Articles
51 Articles
BREAKING: Federal Reserve Cuts Interest Rates by 25 Basis Points
Federal Reserve Chairman Jerome Powell on Wednesday announced the Fed reduces interest rates by 25 basis points – or 0.25% to 4.25%. This is the first interest rate reduction in 9 months and it is only a 25 basis point cut. Breaking: The Fed lowered rates by a quarter point, and officials penciled in cuts at each of two remaining meetings this year https://t.co/5W3WRYPWK9 — The Wall Street Journal (@WSJ) September 17, 2025 DEVELOPING… The post …
How many more interest-rate cuts are coming? Here's what you should be watching in Jerome Powell's big speech.
Jerome Powell, the chairman of the Federal Serve Board.Tom Williams/CQ-Roll Call, Inc via Getty ImagesThis post originally appeared in the Business Insider Today newsletter.You can sign up for Business Insider's daily newsletter here.Twas the day of the Fed rate-cut decision, and all across Wall StreetNot a trader was stirring, except to grab a Zyn from their seat. Everyone was waiting to hear Fed Chair Jerome Powell speakAnd hoping his outlook …
The U.S. Federal Reserve wrestles with how many interest rate cuts to make and how fast
With the U.S. Federal Reserve widely expected Wednesday to reduce its key interest rate by a quarter-point to about 4.1 per cent, economists and Wall Street investors will be looking for signals about next steps: How deeply might the Fed cut in the next few months?
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