US Interest Rate Announcement Today: Fed Rate Decision, Powell Speech, and FOMC Meeting Updates
The U.S. Federal Reserve delivered a widely anticipated but closely scrutinized decision today, announcing its first interest rate cut since December 2024. With global markets on edge, the move has already sparked debates on the Fed’s outlook for inflation, jobs, and growth. Investors, homeowners, and policymakers alike are now asking: what will happen to mortgage rates after Fed rate cut, and when is the next Fed meeting?
Fed Rate Cut Announcement: 25 Basis Points Lower
At the conclusion of the September FOMC meeting, the Fed lowered the federal funds rate by 25 basis points, bringing it to a new target range of 4.00%–4.25%. This decision breaks a nearly year-long pause in policy adjustments. According to officials, the cut was driven by rising risks to employment, with job growth slowing and the labor market showing early signs of weakness. Inflation remains above the 2% target, but Powell emphasized that downside risks to employment have become harder to ignore.
People also search for related concerns such as U.S. inflation outlook for 2026–2027, potential shifts in Treasury yields, and the impact of Fed monetary policy on consumer borrowing.
FOMC Meeting Live: Dot Plot and Economic Projections
The September FOMC meeting offered updated economic projections, revealing a split within the committee. The dot plot suggests that a majority of policymakers expect at least two more rate cuts in 2025, though opinions diverge on whether the economic environment will support additional easing. Some officials worry that inflation, boosted by tariffs and supply chain pressures, may prove stickier than anticipated.
Investors closely watching the FOMC meeting live updates noted the Fed’s caution: it is not committing to a fixed rate-cut path. Instead, future moves will depend on incoming data. People also search for whether the Fed’s projections will influence the stock market and consumer mortgage rates.
Jerome Powell’s Speech Breakdown: Inflation vs. Jobs
In his post-meeting press conference, Fed Chair Jerome Powell struck a careful balance between optimism and caution. He reiterated that the central bank remains committed to returning inflation to target but highlighted that risks to employment now weigh more heavily than before. Powell dismissed suggestions of a larger half-point cut, saying there was no strong support for such a move among policymakers.
Jerome Powell comments on labor market softening were a key focus, with his acknowledgment that job creation has slowed significantly since earlier in the year. He also confirmed that the Fed will continue reducing its balance sheet, including Treasury and agency securities.
Market Reactions: Stocks, Bonds, and Mortgage Rates
Markets reacted swiftly to the announcement. Stock indexes initially rose on the news of easier policy but later pared gains as investors digested the Fed’s cautious tone. Treasury yields fell modestly, while analysts debated the long-term impact on borrowing costs.
People also search for what will happen to mortgage rates after Fed rate cut, and early indications suggest that homeowners and buyers could benefit from slightly lower lending costs. However, with inflation still elevated, savings and fixed-income returns may remain under pressure.
Inflation Outlook and Next Fed Meeting
The Fed’s forecasts indicate that inflation will stay above target through at least 2026, easing only gradually toward 2% in 2027. At the same time, unemployment is projected to rise slightly as growth cools. With such an uncertain backdrop, the focus now turns to when is the next Fed meeting and what new data will shape policymakers’ choices.
Global risks, tariffs, and domestic political pressures are also expected to play a role in how aggressive or cautious the Fed becomes in future decisions.
