How much did the Fed cut today?

25 basis points, bringing the target range to 4.00%–4.25%.

Will there be more cuts this year?

The dot plot and guidance leave room for further quarter‑point cuts if inflation and labor data evolve as expected.

What the Fed’s Latest Move Means for Growth, Jobs, and Inflation

Overview

Today the Federal Reserve cut the federal funds rate by 25 basis points, setting a new target range of 4.00%–4.25%. Chair Jerome Powell said there was no strong support for a larger 50 bp move, signaling a measured approach to easing.

Key Points

Policy action: 25 bp cut; new target range 4.00%–4.25%.
Rationale: A softening labor market alongside still‑elevated, but moderating, inflation.
Guidance: Powell noted there wasn’t a “big push” for a larger cut; the dot plot leaves room for additional reductions if data warrant.
Latest data watch: Markets focus on wages, services inflation, and credit conditions. August CPI ran at ~2.9% year‑over‑year, while unemployment has ticked higher from lows.

Implications

Borrowing costs should ease modestly, though rate‑sensitive sectors will move with expectations for further cuts. Businesses can stress‑test financing plans; households may find improved refinancing windows. Long‑term investors should stay anchored to fundamentals.

References

Fed press conference highlights and major financial press coverage (same‑day reports).