Sunday, June 22, 2025

Latest

Federal Reserve Cuts Interest Rates 25 Bps, Signals Cautious Optimism

The Federal Reserve announced a quarter-point cut in its benchmark interest rate on Wednesday, lowering the target range to 4.25% to 4.5%. This marks the third rate reduction in 2024, bringing the total cuts to 1 percentage point since September.

In its statement, the Federal Open Market Committee noted that economic activity continues to expand at a solid pace, while labor market conditions have eased since earlier in the year. The unemployment rate, though slightly higher, remains low.

The Fed acknowledged progress on inflation towards its 2% objective but cautioned that it remains somewhat elevated. The committee emphasized its commitment to achieving maximum employment and price stability, stating that risks to these goals are roughly balanced.

Fed Chair Jerome Powell and the majority of FOMC members voted in favor of the rate cut, with only one dissenting vote preferring to maintain the previous target range. The decision comes as the central bank navigates a complex economic landscape, balancing concerns over inflation with the need to support continued growth.

Looking ahead, the Fed signaled a cautious approach to future rate adjustments. The committee will carefully assess incoming data, the evolving economic outlook, and potential risks before making further changes to the federal funds rate.

The central bank also announced it would continue reducing its holdings of Treasury securities, agency debt, and mortgage-backed securities. This gradual unwinding of its balance sheet complements the interest rate policy in managing overall monetary conditions.

The Fed’s next meeting is scheduled for late January.


Information for this story was found via the Federal Reserve. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Tudor Gold x American Creek: Consolidating A Massive Gold Project

Aura Minerals: The Era Dorada Underground PEA

Gold Is Now Smart Money’s End Game | Doug Casey

Recommended

Goliath Resources Closes Out Funding Round With Total Gross Proceeds Of $27.1 Million

Silver47 Kickstarts 4,000 Metre Drill Campaign At Red Mountain Project

Related News

Cathie Wood Pulls A “Karen” On US Federal Reserve, Questions Interest Hike Decisions

ARK Invest CEO Cathie Wood called out the US Federal Reserve on its basis for...

Tuesday, October 11, 2022, 12:10:00 PM

Is the Federal Reserve Worried Markets Aren’t Taking its Aggressive Policies Seriously?

The take-home message from the Federal Reserve’s December policy meeting suggests policy makers are growing...

Thursday, January 5, 2023, 07:29:00 AM

US Treasury Yields Respond To Fed’s Relaxed Inflation Policy

US bond markets appeared to have reacted rebelliously to the Federal Reserve’s phlegmatic stance on...

Friday, March 19, 2021, 10:34:00 AM

US Dollar’s Role as a Reserve Currency May Soon Come to an End: Goldman Sachs

As the Federal Reserve continues to pump trillions of dollars into the US economy, concerns...

Wednesday, July 29, 2020, 06:29:00 PM

Rapid Pace of Rent Increases in the U.S. Seems to Argue for Aggressive Action by the Fed

The stock market is facing two main obstacles: 1) the global economic impact of the...

Tuesday, February 22, 2022, 03:41:00 PM