BREAKING: Fed reduces interest rates by 25bps. pic.twitter.com/5Du0ZpiLoS
— Clash Report (@clashreport) September 17, 2025
| Courtesy of badanov, Regnum explains: |
Direct Translation via Google Translate. Edited.
The US Federal Reserve (FRS) has decided to cut its key interest rate by 0.25 percentage points to a target range of 4–4.25% per annum. This was announced by Jerome Powell, Chairman of the Federal Reserve's Board of Governors.
This is the first rate cut since December 2024, when the rate was fixed at 4.25-4.5%. The decision was in line with market expectations.
Powell also announced the regulator's plans to cut 10% of the staff on the Board of Governors and all Reserve Banks in the system.
The Fed's next meeting is scheduled for October 28-29, and many traders expect further rate cuts.
On August 22, the US dollar fell sharply after Powell's speech in Jackson Hole, according to trading data. He noted that the stability of the unemployment rate and other labor market indicators allows the Fed to act cautiously and consider changing its policy.
Before that, on June 26, the dollar also plummeted due to doubts about the Federal Reserve's independence. Then, US President Donald Trump stated that he could replace the current Fed chairman by the fall with someone willing to lower rates.
Earlier, on April 17, Trump stated that Powell should leave his post as soon as possible, calling him "Mr. Too Late" and a "major loser." In response, the Fed chief assured that he would remain in his post.