how much did the interest rate drop

The interest rate dropped by a quarter of a percentage point (0.25%) on September 17, 2025. The Federal Reserve cut its key interest rate from a previous range of 4.25% to 4.5% down to a new range of 4.0% to 4.25%, marking the first rate cut of the year 2025. This decision reflects concerns about a weakening labor market and an effort to support economic growth amid rising inflation risks.