The Federal Reserve cut the benchmark federal funds rate by 0.25 percentage points (25 basis points) today, lowering the rate range to 4.00% - 4.25%. This is the first rate cut of 2025 after holding rates steady through the earlier part of the year. Policymakers also signaled the potential for two more 25 basis-point rate cuts later this year, in October and December. The move was made in response to signs of a weakening labor market, despite inflation remaining above the Fed’s 2% target.
