September 2025: the Fed's first cut of the cycle
The quarter-point reduction came with one dissent, from a new governor who wanted twice as much.
Kivorent News desk, published , 1 min read
4.00–4.25%Fed target range after the September 2025 cut
This is a look back at an event from . We wrote it on November 11, 2026, from the sources listed at the end.
The Federal Reserve lowered its benchmark interest rate by a quarter of a percentage point on September 17, 2025, to a range of 4.00% to 4.25%.
What the statement said
Growth had slowed in the first half of the year. Hiring had cooled and unemployment had edged up, though it remained low. Inflation had risen and was somewhat elevated. The committee judged that the risks to employment had grown.
The vote
One member dissented. Governor Stephen Miran preferred a half-point cut.
How it reads now
This was the first of three cuts in a row, ending with the December 2025 decision. The concern about jobs that drove them gave way within a year to concern about prices, and by September 2026 the Fed was raising rates again.
This article is general information. It is not investment advice, and trading involves the risk of losing money.
Sources
- Federal Reserve issues FOMC statement, Federal Reserve, September 17, 2025
Spotted an error? Tell us and we will fix it.