Fed rate cut is attempt to prevent recession without sending prices soaring

Photo: President Donald Trump speaks to Fed Chair Jerome Powell during a tour of the Federal Reserve in Washington, D.C., Thursday, July 24, 2025. Photo credit: Official White House photo by Daniel Torok via Flickr. US government work. Article by Ryan Herzog. The Conversation – September 17, 2025.

The Federal Reserve on Sept. 17, 2025, cut its target interest rate as it shifts focus from fighting inflation to supporting the choppy labor market. As financial markets expected, the Fed lowered rates a quarter point to a range of 4% to 4.25%, its first cut since December 2024. The Fed’s decision to begin cutting rates comes as evidence mounts that the U.S. labor market is losing momentum. The headline unemployment rate has stayed steady at near record lows, but the underlying trends are more concerning. […]

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