Whither US Interest Rates Now That Fed Is Cutting Again?

2025-09-20 02:01:16

(MENAFN- Asia Times) The Federal Reserve is cutting interest rates again, which is good news for farmers and other business borrowers, but it remains unclear how fast and how far the Fed will move from here.

At its mid-September meeting, the Fed's Federal Open Market Committee opted for a quarter-point cut. That brought its benchmark federal fund rate to a range of 4% to 4.25%.

With the job market showing signs of weakening lately, the cut was widely expected. Fed Chair Jerome Powell signaled it in a speech last month. Eleven of the 12 voting FOMC members voted for the cut, with the 12th dissenting in favor of a half-point reduction.

But there was less unanimity about the future among the committee's 19 members – seven Fed governors and 12 Federal Reserve bank presidents, five of whom vote on a rotating basis.

In the so-called“dot plot” that the members fill out with their economic projections four times a year, 10 of the 19 forecast at least two more quarter-point rate cuts this year, while two members forecast only one cut and seven predicted no more cuts this year. The Fed stresses that these are individual members' projections, not policy plans.

In the latest quarterly“dot plot,” 10 of the 19 members of the Federal Reserve's Federal Open Market Committee see at least two more quarter-point federal-funds interest rate cuts this year, two see one and seven see none. Graphic: Federal Open Market Committee

Until this cut, the central bank had left rates unchanged this year after slashing them a full percentage point in the last four months of 2024.

MENAFN20092025000159011032ID1110087142

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.