Federal Reserve Cuts Rates by a Quarter Point to 4% to 4.25%, Its First Reduction of 2025
On September 17, 2025, the Federal Reserve concluded a two-day policy meeting in Washington and announced it was lowering the target range for the federal funds rate by a quarter of a percentage point, to 4 to 4.25 percent. It was the Fed's first rate cut since December 2024, and its first of 2025.
In its statement, the Federal Open Market Committee said growth of economic activity had moderated in the first half of the year, job gains had slowed, and the unemployment rate had edged up but remained low, while inflation had moved up and remained somewhat elevated. Judging that downside risks to employment had risen, and in light of the shift in the balance of risks, the Committee decided to cut rates. The Fed will continue reducing its holdings of Treasury securities and agency securities.
The decision passed 11 to 1. Governor Stephen I. Miran voted against it, preferring a half-point cut. The Board of Governors also voted to lower the interest rate paid on reserve balances to 4.15 percent, effective September 18.
Notably, Governor Lisa Cook, whose attempted removal was being fought in court, attended the meeting and voted in favor. Trump had announced her removal in August over mortgage allegations; Cook has sued to have the removal declared unlawful, and she continued to serve while the case proceeded.
Chair Jerome H. Powell took reporters' questions at a press conference following the meeting. The Committee said that, in considering additional adjustments, it would carefully assess incoming data, the evolving outlook and the balance of risks.
Related: Fed Governor Cook Sues Trump, Asking Court to Declare Her Removal Unlawful
(Source: Federal Reserve)
Source: Federal Reserve
Published by GSM · USA (original Chinese edition)
Photo: 图：2025年9月17日，美联储主席 Jerome Powell 在联邦公开市场委员会会议后出席记者会。美联储官方照片，公共领域，经 Wikimedia Commons。/ Photo: Federal Reserve Chair Jerome Powell answers reporters' questions at the FOMC press conference on September 17, 2025. Federal Reserve photo, public domain, via Wikimedia Commons.
