Summary: The U.S. Federal Reserve cut its policy rate by 25 bps to a 4.00%–4.25% range and signalled two more reductions in 2025, while Governor Stephen Miran dissented in favor of a 50 bps move. Chair Jerome Powell said the committee is “weighting the labor market more” amid evidence of cooling hiring.
What happened
The FOMC delivered its first cut since December and updated projections to show a lower end‑2025 path. Miran, sworn in just before the meeting, argued for a steeper cut; in a follow‑up interview he defended the larger move as consistent with labor‑market risks and fading tariff pass‑through.
Why it matters
- Macro path: A faster easing cycle would flow through mortgages, capex, and credit spreads into year‑end.
- Independence watch: A lone dissent and Powell’s emphasis on data dependence aim to reassure markets after weeks of political heat.
Key facts
- New range: 4.00%–4.25%; consensus vote 11–1.
- Guidance: median shows two more 2025 cuts.
- Dissent: Miran sought a 50 bps cut.
What to watch
October meeting odds; payrolls trend; inflation progress versus a softer labor market.