The Federal Reserve has cut the federal funds rate by a quarter of a point on Wednesday. President Trump has been pushing the Fed to lower interest rates since he resumed office last January.
The Federal Reserve on Wednesday lowered its benchmark interest rate by 0.25 percentage points — its first cut since December — as the U.S. grapples with a stalling labor market and slower economic growth.
The Fed cut reduces the federal funds rate — what banks charge each other for short-term loans — to between 4% and 4.25%, down from its prior range of 4.25% to 4.5%. The last time the central bank eased borrowing costs was in December 2024, when it also trimmed rates by a quarter of a percentage point.
Lowering this benchmark rate tends to have an effect on interest rates across the board, including in such matters as mortgages, business loans, and auto loans. This can give a boost to the American economy by lowering the cost of money.
This may not be the last such cut this year.
Federal Reserve officials are also penciling in two more rate cuts in 2025, but only one in 2026, according to the central bank's summary of economic projections. That may disappoint Wall Street, with investors before the meeting projecting a total of five cuts over the rest of the year and 2026.
2026 is a way off yet. A lot can happen between now and the Fed's first meeting of the next year.
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As of this writing, President Trump has not yet commented publicly on the interest rate cut. He has made some pointed comments in recent weeks about the Federal Reserve not lowering interest rates before now; the Trump administration will no doubt tout this as a victory.
Editor's Note: The mainstream media continues to deflect, gaslight, spin, and lie about President Trump, his administration, and conservatives.
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