Fed cuts rates for first time in 2025

The US Federal Reserve cut its benchmark interest rate by 25 basis points on Wednesday, in line with expectations, bringing it to a range of 4.0%–4.25% after keeping rates unchanged at all meetings earlier this year.

In its statement, the Federal Open Market Committee (FOMC) said that recent indicators suggest that growth of economic activity moderated in the first half of the year. 

Job gains have slowed, and the unemployment rate has edged up but remains low. Inflation has moved up and remains somewhat elevated.