NextFin news, The US Federal Reserve is poised to make its first interest rate cut of 2025 at its two-day policy meeting scheduled for this Wednesday and Thursday in Washington, D.C., according to multiple reports on Sunday.
The anticipated 25 basis points reduction would lower the federal funds rate from the current range of 4.25% to 4.5%, where it has remained since December 2024. This move comes as the Fed responds to signs of a weakening jobs market and ongoing concerns about inflation impacts from tariffs imposed during the Trump administration.
Political tensions have heightened around the Fed's decision-making process. President Donald Trump has previously pressured the central bank to reduce rates and recently took action to remove Fed Governor Lisa Cook, the first Black woman to serve on the Fed's board, citing mortgage fraud allegations. Cook has challenged her removal legally and remains in her position while the case proceeds.
Additionally, the Fed has experienced personnel changes, including an early resignation of another Fed official in August, adding to the uncertainty surrounding the institution's leadership.
Josh Lipsky, chair of international economics at the Atlantic Council, noted the clarity of the Fed's expected action but highlighted the high drama due to internal committee personnel issues.
The Fed's rate decision will be closely watched by markets and policymakers as it signals the central bank's approach to balancing economic growth and inflation control amid political scrutiny.
Source: Reports from Free Malaysia Today and Citizen Tribune, published Sunday, September 14, 2025.
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