US Federal Reserve Chair Jerome Powell speaks at a news conference at the Federal Reserve headquarters, following the Federal Open Market Committee (FOMC) meeting in Washington, DC, on September 17, 2025. JIM WATSON / AFP
The US Federal Reserve on Wednesday, September 17, lowered interest rates for the first time this year, flagging slower job gains and risks to employment as policymakers face heightened pressure under President Donald Trump. The Fed cut the benchmark lending rate by 25 basis points, to a range between 4% and 4.25%, while penciling in two more potential cuts this year.
Fed Chair Jerome Powell stressed that the central bank remains "strongly committed" to maintaining its independence from politics when asked about the addition of a key advisor to Trump among its ranks this week. He added that the Fed was "right to wait and see how tariffs and inflation and the labor market evolved" before lowering rates for the first time in nine months.
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Jerome Powell signals potential rate cut and defends Fed independence in final Jackson Hole address
