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View all episodesUSA Today’s run, before and after September 17, 2025
1:00:40Now PlayingWatch live: Fed announces interest rate cut
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September 17, 2025
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1:00:40Now PlayingAfter nine months of staying on the sidelines, the Federal Reserve on Sept. 17 announced a quarter-percentage-point cut, likely the first in a series of reductions to usher in lower borrowing rates for consumers.
The rate cut – the Fed’s first since late 2024 – lowers the Fed’s benchmark interest rate to a range of 4% to 4.25%. Economists largely expect at least one more reduction this year.
Typically, the Fed hikes rates or keeps them steady to tame inflation. The central bank lowers rates to juice the economy. While the Fed previously held back on rate cuts due to inflation concerns, a series of disappointing jobs reports showed a weakening labor market.
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