Jerome Powell-led Federal Reserve gives first interest rate cut of 2025; Dow Jones rises
Published on 18/09/2025 12:00 AM
Jerome Powell-led Federal Reserve gives first interest rate cut of 2025; Dow Jones risesFollowing the rate cut, US stock markets showed mixed reactions. The Dow Jones Industrial Average rose nearly 0.5%, while the S&P 500 dipped 0.2%, and the Nasdaq Composite fell over 0.4%.By Ajay Vaishnav September 18, 2025, 12:00:14 AM IST (Updated)2 Min ReadAs widely anticipated, the Jerome Powell-led US Federal Reserve on Wednesday, September 17, slashed its key interest rate by 0.25 percentage points to bring it to a range of 4.00%–4.25%. The move aims to support economic growth amid worries over a slowing US labour market and rising inflation. The Fed signalled that further rate cuts may follow later in the year, depending on economic conditions.
What does the “dot plot” indicate?
After announcing their latest rate decision, officials shared their updated “dot plot”(a chart showing each member’s prediction for future rate changes). Most expect two more rate cuts before the year ends, according to a report on CNBC, with opinions varying widely.
One dot, possibly from Miran, who strongly supports lower rates, suggests a big drop of 1.25 percentage points, the report added. The chart doesn’t name anyone, but each dot represents one person’s view.
The CNBC report further indicated that out of 19 members:
– 10 expect two more cuts, likely in October and December
– 9 expect just one more cut
– 1 doesn’t want any cuts at all, not even the one just made
How did Wall Street react?
Following the rate cut, US stock markets showed mixed reactions. The Dow Jones Industrial Average rose nearly 0.5%, while the S&P 500 dipped 0.2%, and the Nasdaq Composite fell over 0.4%. Investors remain cautious, awaiting further signals from the Fed and economic data.Continue ReadingFirst Published: Sept 17, 2025 11:55 PM ISTCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsFederal Open Market Committee (FOMC) meetingFederal ReserveJerome Powell