US Fed meeting 2025: The US Federal Reserve, on Wednesday, announced a 25 bps rate cut in its benchmark interest rate to a range of 4–4.25 per cent. The decision marks the beginning of a monetary easing cycle designed to support a slowing labour market, despite persistent inflation.
The Fed noted that future policy moves will hinge on economic data, the broader outlook, and risk assessments. It also highlighted that growth weakened in the first half of the year and job creation has cooled, though inflationary pressures remain elevated.
Looking forward, policymakers signalled the likelihood of two additional rate cuts this year, totalling 50 basis points, followed by one cut in 2026 and another in 2027.
“The FOMC cut the benchmark interest rate by 25 bps as widely anticipated. The policy statement emphasised a shift in labour market conditions, noting…
