Fed-Chef Jerome Powell
The U.S. Federal Reserve has lowered its benchmark interest rate in September, cutting it from 4.25 percent to a target range of 4.00–4.25 percent. The move comes amid clear signs of slowing economic momentum, according to recent Federal Reserve meeting minutes.
While many market participants had anticipated a rate cut given the deteriorating data, the decision nonetheless unsettled investors. The Fed emphasized that the move does not signal the beginning of a sustained easing cycle and warned that the path ahead remains uncertain.
The central bank’s communication highlighted a shift in priorities: with inflation pressures easing, policymakers are now increasingly focused on supporting economic growth. At the same time, divisions within the Federal Open Market Committee have widened, adding to uncertainty around the future policy trajectory.
For investors, the latest step reflects rising concerns over weakening U.S. growth rather than a traditional inflation-driven policy narrative. As the Fed walks a fine line between preventing recession risks and maintaining price stability, markets will continue to scrutinize incoming data and Fed messaging closely.
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