Archive · 19 Sep 2025
Fed Cuts Rates, Prioritizing Growth over Inflation
The US Federal Reserve, or the Fed, decided to lower interest rates by 25 basis points to boost the economy, a decision made at the September 2025 FOMC meeting.
This was prompted by slower job growth and rising inflation.
Despite the rate cut, inflation is still expected to remain above the target for years.
Concerns include the housing market's slowdown and the potential impact of import tariffs on domestic inflation.
The Fed’s projections for growth seem optimistic considering the economic challenges.
The Federal Reserve cut interest rates by 25 basis points.
The decision was made at the September 2025 FOMC meeting.
US non-farm payrolls averaged 29,000 per month from June-August 2025.
The unemployment rate has increased to 4.3%.
US PCE inflation has risen to 2.6%.
- Who
- Federal Reserve (the Fed)
- What
- Cut interest rates by 25 basis points
- When
- September 2025
- Where
- United States
- Why
- To prioritize growth over inflation amid slowing job growth and rising inflation
Pro-Growth Advocates
Inflation Hawks
Rate Cut Amount
Pro-Growth Advocates
Advocated for a 50 basis point rate cut.
Inflation Hawks
Favored a more measured 25 basis point cut.
- Rate Cut
- 25 basis points
- Meeting
- September 2025 FOMC
- US Non-farm Payrolls
- 29,000 monthly average (June-August 2025)
- US Unemployment Rate
- Increased to 4.3%
- US PCE Inflation
- 2.6%
- GDP Growth Projection Q4 2025
- 1.6%
- Expected Unemployment Rate
- 4.5%
