Fed Lowers Rates to 4%–4.25%, More Cuts Possible!

For the first time this year, the Federal Reserve has approved an interest rate cut. The Fed opted for a quarter-point reduction to the central bank’s benchmark rate. The rate range is now set at 4% to 4.25%. According to Fed Chair Jerome Powell, one reason for the reduction is that “the labor market is really cooling off.” The Fed indicated that it expects two additional rate cuts before the end of the year. However, seven of the 12 members of the Fed’s rate-cutting committee said that rates should remain unchanged for the remainder of 2025.