NextFin news, The Federal Reserve is set to initiate back-to-back-to-back interest rate cuts starting this week in Washington, D.C., as of Monday, September 15, 2025. This move comes amid growing concerns over a slowing U.S. labor market, persistent inflation above the Fed's 2% target, and increasing political pressure from the White House.
According to reports from The Straits Times and Bankrate, the Fed is expected to cut rates for the first time in nine months during its meeting scheduled for Wednesday, September 17, 2025. This anticipated quarter-point reduction is seen as a response to disappointing employment data, including two consecutive weak jobs reports and rising unemployment benefit claims.
U.S. President Donald Trump has publicly urged the Federal Reserve to lower borrowing costs, predicting a "big cut" this week. Trump has also exerted influence by attempting to remove Fed governor Lisa Cook and nominating allies to the Fed's Board of Governors, potentially shifting the central bank's policy stance toward lower rates.
Despite the expected rate cuts, some Federal Reserve officials remain cautious due to inflationary pressures driven by tariffs and price increases in the services sector. Policymakers are divided, with some favoring no cut and others advocating for larger reductions, potentially leading to multiple dissenting votes at the meeting.
Economists from Barclays Capital and BNY Investments suggest that the Fed may implement rate cuts at each of its remaining meetings in 2025, followed by additional cuts in early 2026. However, they emphasize that the pace and depth of cuts will be measured to balance inflation control and economic growth.
The Federal Reserve will release its updated rate projections and a post-meeting statement on Wednesday, September 17, 2025, at 2 p.m. Eastern Time, followed by a press conference with Fed Chair Jerome Powell. Market participants and analysts will closely monitor these communications for insights into the Fed's economic outlook and policy direction.
Explore more exclusive insights at nextfin.ai.
