when will fed cut rates

The Federal Reserve is widely expected to cut interest rates at its next meeting scheduled for September 16-17, 2025. Fed Chair Jerome Powell recently signaled a possible rate cut, citing rising risks to the labor market and a shifting balance of economic risks, although he emphasized that no final decision has been made yet. The Fed has held rates steady at 4.25%–4.50% since December 2024, but Powell’s remarks and the slowing job growth have increased market expectations of a cut, possibly by 25 basis points, at the September meeting. Several Fed officials have expressed support for a rate reduction if the labor market weakens further and inflation risks persist. The Fed will continue to evaluate incoming economic data, especially employment and inflation reports in early September, before formalizing any decision.