FOMC Lowers Benchmark Rate; Median Dot Projects Two More Cuts in 2025

02:22 PM EDT, 09/17/2025 (MT Newswires) -- The Federal Open Market Committee lowered the federal funds rate by 25 basis points at its meeting to a range of 4% to 4.25%, the FOMC's statement Wednesday afternoon showed.

The updated Summary of Economic Projections now sees two more rate reductions in 2025, compared with only one more in the last SEP, ending the year at a median rate of 3.6%.

There was a wide disparity of views with several participants expecting no further reductions and one participant calling for an additional 125 basis point reduction.

There is still expected to be one more rate cut in 2026 and one more cut in 2027, leaving the median rate at the end of 2027 at 3.1% rather than 3.4%.

There was only one dissent to the 25-basis point reduction from new Fed Governor Stephen Miran, who preferred a 50-basis point cut.

"Recent indicators suggest that growth of economic activity moderated in the first half of the year," the statement said. "Job gains have slowed, and the unemployment rate has edged up but remains low. Inflation has moved up and remains somewhat elevated."

Federal Reserve Chair Jerome Powell's press conference begins at 2:30 pm ET.

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