America’s central bank is probably on the edge of its first rate cut of 2025.
The Federal Reserve is meeting for the sixth time this year. At every previous meeting in 2025, they’ve opted to hold rates steady, but that’s set to change. Wednesday’s decision isn’t a sure thing, but CME FedWatch estimates a near-100% chance of a cut.
The meeting follows several monthly reports showing soft job growth, a slow rise in unemployment, and inflation numbers creeping back up. President Donald Trump, meanwhile, has put Fed Chair Jerome Powell in the hot seat, repeatedly calling for a rate cut and criticizing the central bank’s leadership. Powell has maintained that his decision-making will be solely based on the Fed’s dual mandate of maximum employment and stable prices.
Powell signaled that the Fed could be ready for a policy change in his Jackson Hole keynote last month.
What the Likely First Rate Cut of 2025 Means for Americans
