Fed Slashes Rates to 4.00%–4.25% as Expected, Signals Cautious Path Ahead

During its September 2025 meeting, the Federal Reserve reduced the Federal Funds Target Range (FFTR) by 25 basis points to 4.00%–4.25%, aligning precisely with market expectations. The following preview was released at 10:00 GMT ahead of the Federal Reserve’s policy announcements:

The US Federal Reserve was anticipated to implement its first policy rate cut of 2025. The updated Summary of Economic Projections (SEP), including the dot plot, may provide critical insights into the future direction of monetary policy.

The US dollar could experience volatility depending on shifts in market expectations for the rate outlook. The Federal Reserve will release its monetary policy decisions and the revised SEP, known as the dot plot, following the conclusion of its September meeting on Wednesday.