Fed Cuts Rates by 25 Bps
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The Fed on Wednesday announced its second interest-rate cut of 2025, reducing borrowing costs in a move to spur U.S. hiring.
Interest rates should continue their downward journey, as forecasters expect another rate cut from the Fed on Oct. 29. Are more cuts coming?
Some policymakers have expressed caution about lowering rates further, while President Donald Trump and his recent appointee have pushed for steep cuts.
Stocks and bonds initially rallied after the central bank cut interest rates on Sept. 17, but began giving up those gains before Federal Reserve Chair Jerome Powell started his post-meeting press conference.
The Japanese yen tumbled against the U. dollar on Thursday after the Bank of Japan adopted a less hawkish tone than traders expected, while the greenback was boosted after Federal Reserve Chair Jerome Powell on Wednesday said a rate cut in December was not guaranteed.
The U.S. central bank is widely expected to cut interest rates for the second meeting in a row even though the government shutdown is obscuring officials’ view of the economy.