US Fed Meeting 2025 LIVE: Jerome Powell-led FOMC slashes rates by 25 bps to 4%-4.25% amid ‘employment risks’

US Fed Meeting 2025 LIVE: The US central bank's Federal Open Market Committee (FOMC), led by Chairman Jerome Powell announced a benchmark interest rate cut at 4%-4.25% today, following its two-day meeting from September 16 to September 17. This marks the first rate cut in 2025.

The announcement comes amid moderate growth of the economy in the first half of the year. Job gains have slowed, and the unemployment rate has edged up but remains low. Inflation has increased and remains somewhat elevated, Fed noted.

The Federal Reserve was anticipated to announce the principal interest rates amid a significant decline in United States economic data, particularly within the labour market, thereby increasing forecasts that the central bank will decrease its benchmark interest rate by 25 bps.

After the last FOMC meeting, Fed Chair Jerome Powell announced that the interest rates would remain unchanged at 4.25% to 4.5%. Notably, the Federal Reserve has held the interest rate steady for five consecutive meetings over the past nine months.

The rates have remained steady for some time now despite continued pressure from President Donald Trump, as the Fed adopted a wait-and-watch approach, while anticipating the impact of higher tariffs imposed on trading partners.

Catch all the latest updates here on the US Fed meeting LIVE here.

US Fed Meeting 2025 LIVE: Speaking on the inflation data, Powell noted, “Inflation has eased significantly from its highs in mid 2022 but remains somewhat elevated relative to our 2% longer run goal estimates.”

US Fed Meeting 2025 LIVE: Powell said that tariff has increased the prices of goods in some sections.

US Fed Meeting 2025 LIVE: Powell said, “wage growth has continued to moderate while still outpacing inflation overall. The market is slowing in both the supply of and demand for workers, which is unusual in this less dynamic and somewhat softer labour market. The downside risks to employment appear to have risen in our Sep median projection for the unemployment rate is 4.5%.”

US Fed Meeting 2025 LIVE: Powell highlighted that the moderation in growth largely reflects a slowdown in consumer spending.

US Fed Meeting 2025 LIVE: Economic activity has moderated GDP growth, GDP rose at a pace of around one and a half percent in the first half of the year, down from 2.5%, says Jerome Powell.

US Fed Meeting 2025 LIVE: Fed chair Jeorme Powell's speech starts.

US Fed Meeting 2025 LIVE: Federal Reserve Chairman Jerome Powell's address is expected to begin shortly. The speech will stream on the Fed's official website and its YouTube channel.

Jerome Powell will start the press conference at 2:30 p.m. (EST). For Indians waiting for Powell's announcement, you can tune in to the official broadcast stream at 12:00 midnight (IST).

US Fed Meeting 2025 LIVE: Fed says that the downside risks to employment have increased.

US Fed Meeting 2025 LIVE: Jerome Powell, John Williams, Michael Barr, Michelle Bowman, Susan Collins, Lisa D. Cook, Austan D Goolsbee, Philip N. Jefferson, Alberto G. Musalem, Jeffrey R. Schmid, and Christopher J. Waller voted for the 25 bps cut.

US Fed Meeting 2025 LIVE: Stephen I. Miran, who recently took the oath of office as a member of the Board of Governors of the Federal Reserve System, dissented to a 25 bps cut. He advocated for a 50 bps cut in interest rates.

US Fed Meeting 2025 LIVE: Recent indicators suggest that economic growth slowed in the first half of the year, FOMC noted. Job gains have decelerated, and the unemployment rate has increased slightly but stays low. Inflation has risen and remains somewhat high.

US Fed Meeting 2025 LIVE: The FOMC seeks to achieve maximum employment and inflation at the rate of 2 per cent over the longer run. Uncertainty about the economic outlook remains elevated.

US Fed Meeting 2025 LIVE: Jerome Powell-led FOMC has decided to cut benchmark interest rates by 25bps to 4%-4.25% in its September 2025 policy meeting.

US Fed Meeting 2025 LIVE: Jerome Powell-led FOMC has decided to cut benchmark interest rates in its September 2025 policy meeting.

US Fed Meeting 2025 LIVE: In a post on the Truth Social platform, US President Donald Trump asked the Fed to cut the benchmark interest rates

“Just out: No Inflation!!! “Too Late” must lower the RATE, BIG, right now. Powell is a total disaster, who doesn’t have a clue!!!” Trump wrote on September 10.

US Fed Meeting 2025 LIVE: In December 2024, the FOMC slashed the benchmark interest rates by 25 basis points at 4.25% to 4.50%.

US Fed Meeting 2025 LIVE: When central banks cut interest rates outside of recessions, it typically boosts risk assets—equities increase, bond investors benefit from securing yields, and the dollar often loses value, according to a report by JP Morgan Private Bank.

US Fed Meeting 2025 LIVE: FOMC is expected to release the policy decision at 11:30 p.m. (IST).

US Fed Meeting 2025 LIVE: In FOMC's last meeting, the US Federal Reserve decided to keep the key benchmark interest rates steady at 4.25% to 4.5%.

US Fed Meeting 2025 LIVE: Jerome Powell will start the press conference at 2:30 p.m. (EST). For Indians waiting for Powell's announcement, you can tune in to the official broadcast stream at 12:00 midnight (IST) after the FOMC releases the policy decision at 11:30 p.m. (IST).

US Fed Meeting 2025 LIVE: US Fed Meeting 2025 LIVE: Powell earlier hinted that future policy decisions would depend on the state of the labour market. Recent data, however, has shown a decline in the labour market, with hiring slowing, unemployment claims increasing, and the unemployment rate rising. This is a key reason why investors expect the central bank to cut its benchmark interest rate by a quarter point.

US Fed Meeting 2025 LIVE: Prices of copper reached a one-week low on Wednesday as traders reduced their positions ahead of the Federal Reserve's decision on US interest rates, while demand from China, the world's top metals consumer, was subdued by the recent rally in copper prices, reported Reuters.

The three-month copper prices on the London Metal Exchange dropped 1.3% to $9,999 a metric ton by 1600 GMT, remaining above the 21-day moving average, which supports it at $9,912.

US Fed Meeting 2025 LIVE: US unemployment rose to 4.3% in August, up from 4.2% in July. Job growth in the US fell to 22,000 in August, a significant drop from 79,000 in July 2025. The US economy had created 9,11,000 fewer jobs in the 12 months through March, much lower than expected.

US Fed Meeting 2025 LIVE: The US Federal Reserve's September 2025 policy decision is likely to be influenced by a weakening labour market and inflation rates.

US Fed Meeting 2025 LIVE: Jerome Powell, in his Jackson Hole speech, emphasised that higher tariffs have begun to increase the prices of some goods. While the impact of tariffs will build over the coming months, Powell noted that there is considerable uncertainty about whether these price increases will substantially elevate the risk of a persistent inflation problem.

US Fed Meeting 2025 LIVE: The Federal Open Market Committee (FOMC) comprises twelve members: the seven members of the Board of Governors of the Federal Reserve System, the President of the Federal Reserve Bank of New York, and four of the remaining eleven Reserve Bank presidents, who serve one-year terms on a rotating basis.

US Fed Meeting 2025 LIVE: The Federal Open Market Committee conducts eight meetings every year. At these meetings, the Committee assesses economic and financial conditions, decides on the correct course of monetary policy, and evaluates the risks to its long-term objectives of price stability and sustainable economic growth. The committee decides benchmark interest rates.

US Fed Meeting 2025 LIVE: During his Jackson Hole speech, Jerome Powell emphasised that the central bank will stay focused on reaching the 2 per cent inflation target, which is low enough to ensure that inflation does not concern household and business decisions.

US Fed Meeting 2025 LIVE: Jerome Powell's announcement of key interest rate changes today is essential as the central bank is expected to cut interest rates for the first time since December amid pressure from US President Donald Trump.

US Fed Meeting 2025 LIVE: Powell emphasised that the slowdown in the jobs market is more significant than initially assessed. However, he added that weaker job growth has not created much slack in the labour market. The unemployment rate remains historically low and has stayed stable over the past year.

"The July employment report released earlier this month showed that payroll job growth slowed to an average pace of only 35,000 per month over the past three months, down from 168,000 per month during 2024. This slowdown is much larger than assessed just a month ago, as the earlier figures for May and June were revised down substantially," Powell said in his Jackson Hole speech.

US Fed Meeting 2025 LIVE: During his Jackson Hole speech, Powell noted risks associated with higher tariffs and tighter immigration policy. He emphasised the uncertainty of how these policies will finally affect the US economy.

"Significantly higher tariffs across our trading partners are remaking the global trading system. Tighter immigration policy has led to an abrupt slowdown in labour force growth," Powell said.

US Fed Meeting 2025 LIVE: Investors and people across nations can watch Federal Reserve Chairman Jerome Powell's address on the official website and the Fed's YouTube channel.

Jerome Powell will start the press conference at 2:30 p.m. (EST). For Indians waiting for Powell's announcement, you can tune in to the official broadcast stream at 12:00 midnight (IST) after the FOMC releases the policy decision at 11:30 p.m. (IST).

US Fed Meeting 2025 LIVE:Most experts think the US Fed will cut rates by 25 bps. However, rates could come down by 50-75 bps in total by the end of the year.

Economists at ICICI Bank anticipate that the Fed Funds rate will be reduced by 25bps, from 4.25%-4.50% to 4.00%-4.25% in September. They expect a divided vote, with at least two, if not three, members likely to support a 50 bps cut.

"We expect the FOMC to cut rates by 25bps over September, October and December policy meetings respectively. Cumulatively, the FOMC could cut rates by 75bps over 2025. A further 50bps cut in 2026 is expected to unfold, although focus on central bank independence will likely increase in that period," said ICICI Bank.

US Fed Meeting 2025 LIVE: Investors worry that the US economy could experience stagflation , which is a situation of sluggish growth coupled with persistent inflation, if not in 2025, then possibly in 2026, mainly due to President Donald Trump's tariff policies and stricter immigration rules.

However, experts believe the chance of a stagflationary situation is remote, and even if the US economy were to experience such a situation, it would not last long, as Livemint reported earlier.

US Fed Meeting 2025 LIVE: "A 25 bps rate cut won't boost the Indian stock market as it is largely discounted. A cumulative 50 bps or even bigger cut will be a positive for the Indian market. Powell's commentary on growth and inflation will be on the radar of the markets. Trump's tariffs are expected to drag growth lower while increasing inflation," according to G. Chokkalingam, founder and head of research at Equinomics Research Private Limited.

US Fed Meeting 2025 LIVE: In FOMC's last meeting, the US Federal Reserve decided to keep the key benchmark interest rates unchanged at 4.25% to 4.5%.

US Fed Meeting 2025 LIVE: At the Fed's FOMC meeting on 25 July, the Chairman had hinted that future policy decisions would hinge on the state of the labour market. Recent data, however, has shown a decline in the labour market, with hiring slowing, unemployment claims increasing, and the unemployment rate rising. This is a key reason why investors expect the central bank to cut its benchmark interest rate by a quarter point.

US Fed Meeting 2025 LIVE: Gold declined from Tuesday’s record as most asset classes experienced subdued movements ahead of the Federal Reserve's interest rate decision later today. Bullion traded about $40 below its previous high of $3,703.07 an ounce, set in the prior session, reported Bloomberg.

Traders are concentrating on the outcome of the FOMC meeting, where they anticipate a quarter-point cut. Lower rates are seen as positive for the yellow metal.

US Fed Meeting 2025 LIVE: In a post on the Truth Social platform, US President Donald Trump asked the Fed to cut the interest rate.

“Just out: No Inflation!!! “Too Late” must lower the RATE, BIG, right now. Powell is a total disaster, who doesn’t have a clue!!!” Trump wrote on September 10.

US Fed Meeting 2025 LIVE: The US Federal Reserve's policy decision is essential for all credit facilities in the United States, such as loans, credit cards, mortgages, etc.

Interest rates are linked to liquidity in the economy. The nation's central bank controls this liquidity with its rates, which the banks and other financial institutions use to borrow money from the US central bank.

If there is a rate cut, loans and other credit facilities are expected to become cheaper as the central banks want to boost liquidity in the economy. Banks will have more borrowing power, so they are likely to pass the rate cut on to consumer borrowers.

US Fed Meeting 2025 LIVE: Wall Street's main indexes opened flat on Wednesday, ahead of a widely expected interest-rate cut from the Federal Reserve later in the day. Meanwhile, Nvidia shares dropped after reports suggested Chinese tech firms might stop buying its chips.

The Dow Jones Industrial Average increased by 20.5 points, or 0.04%, at the open to 45,778.4. The S&P 500 declined by 1.9 points, or 0.03%, at the open to 6,604.87, while the Nasdaq Composite fell 0.9 points at 22,333.016, reported Reuters.

US Fed Meeting 2025 LIVE: According to Asutosh Mishra, Head of Research, Ashika Institutional Equities, "Inflation remains the key swing factor, with tariffs posing the risk of a near-term flare-up. The labour market looks steady but is showing early cracks, low unemployment paired with fewer job openings points to rising recession risks. With the neutral rate estimated near 3% versus today’s ~4.4%, the Fed has meaningful room to ease if conditions deteriorate”

US Fed Meeting 2025 LIVE: Many experts estimate the US Fed will cut rates by 25 basis points. However, rates may decline cumulatively by 50-75 basis points by the end of the year.

"A 25 bps cut will happen because of the softening US jobs market and Trump's pressure. The Fed may cumulatively cut rates by 50-75 bps by December this year," G. Chokkalingam, founder and head of research at Equinomics Research Private Limited, told Livemint earlier.

US Fed Meeting 2025 LIVE: US Federal Reserve kept the benchmark interest rates unchanged at 4.25% - 4.5%. Check out the key highlights from the Fed’s June policy:

- ⁠The dot plot shows wide dispersion on the matrix with an outlook of Fed Fund rate around 3.4% in 2027

- ⁠7 officials wanted no rate cut in 2025, up from 4 officials from the last meeting.

- ⁠Inflation remained somewhat elevated.

- ⁠Economic projections pointed to further stagflationary pressures.

- GDP forecast lowered to 1.4% down 0.3% from the March meeting.

- ⁠Fed forecast Fed Rate to be 3.9% at the end of 2025, expecting two rate cuts

- Lowered 2025 growth to 1.4% and increased inflation expectations to 3%

- Expected unemployment rate at 4.5% in 2025 and 2026

- ⁠Core PCE projected at 3.1%, 0.3% point higher by the end of 2025

- ⁠Unemployment outlook up to 4.5% or 0.1% higher than in March.

US Fed Meeting 2025 LIVE: The US consumer price index (CPI) rose by 2.9 per cent in August, up 0.2 per cent from July's 2.7 per cent increase. This was the largest single-month rise in inflation since January.

US Fed Meeting 2025 LIVE: Data revealed that US unemployment rose to 4.3% in August, up from 4.2% in July. Job growth in the US fell to 22,000 in August, a significant drop from 79,000 in July 2025. The US economy had created 9,11,000 fewer jobs in the 12 months through March, much lower than expected.

US Fed Meeting 2025 LIVE: “For investors, it (rate cut) means the conversation is shifting: policy that was restrictive for the past two years may now start to turn supportive. Lower rates could help stocks, particularly in areas like technology and housing. Bond yields have already begun to fall as markets prepare for easier policy. Even real estate, which has been under pressure from high mortgage rates, may get some relief if borrowing costs slowly come down,” according to Viram Shah, Founder & CEO, Vested Finance.

US Fed Meeting 2025 LIVE: Experts anticipate a 25 bps cut in interest rates in today's announcement.

According to Viram Shah, Founder & CEO, Vested Finance, “The Federal Reserve is once again in the spotlight, and this time the question is not whether it will cut rates, but by how much. A 25 basis point cut is almost certain, but some in the market are even whispering about a bigger 50 basis point move.”

He added, “That chatter has picked up because the U.S. economy is sending mixed signals: job growth slowed to just 22,000 in August, unemployment has edged up to 4.3%, yet inflation has cooled to around 2.9% - much lower than the peaks of the past two years. This combination gives the Fed more room to support growth without immediately stoking inflation.”

US Fed Meeting 2025 LIVE: Investors and people across nations can watch Federal Reserve Chairman Jerome Powell's address on the official website and the Fed's YouTube channel.

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