Close Menu
Post Card NEWSPost Card NEWS
  • HOME
  • ECONOMY
  • EDUCATION
  • ASTROLOGY
  • ENTERTAINMENT
  • SCHEME
  • SPORTS
  • TECH
What's Hot

iValue Infosolutions IPO Opens: Price Band, GMP & Subscription Status

September 18, 2025

Pakistan Defeat UAE by 41 Runs, Secure Super Four Spot in Asia Cup 2025

September 18, 2025

U.S. Federal Reserve Cuts Interest Rates for First Time in 2025: What It Means for Economy and Borrowers

September 18, 2025
Facebook X (Twitter) Instagram
Post Card NEWSPost Card NEWS
Facebook X (Twitter) Instagram
  • Home
  • TECH
  • LIFESTYLE
  • ECONOMY
  • EDUCATION
  • ASTROLOGY
  • INTERNATIONAL
    • UK
    • AUSTRALIA
    • US & CANADA
  • ENTERTAINMENT
Post Card NEWSPost Card NEWS
Home » U.S. Federal Reserve Cuts Interest Rates for First Time in 2025: What It Means for Economy and Borrowers

U.S. Federal Reserve Cuts Interest Rates for First Time in 2025: What It Means for Economy and Borrowers

EditorialBy EditorialSeptember 18, 2025
Share
Facebook Twitter Email Telegram WhatsApp Threads Copy Link

The U.S. Federal Reserve has reduced its key interest rate by 25 basis points, bringing the federal funds rate down to a range of 4.00%–4.25%. This marks the Fed’s first rate cut of 2025 and signals a cautious shift toward supporting growth amid a cooling economy.

Why the Fed Cut Rates

The Fed said its decision was influenced by a slowing labor market and signs of weaker economic activity.

  • Job creation has eased in recent months.
  • Unemployment has inched upward.
  • Growth indicators point to softer demand.

At the same time, inflation remains above the 2% target, but policymakers believe easing borrowing costs is necessary to balance risks between inflation and rising unemployment.

What the Fed Announced

  • Interest rates lowered from 4.25%–4.50% to 4.00%–4.25%.
  • Two more quarter-point cuts are likely before the end of 2025, if conditions warrant.
  • Fed Governor Stephen I. Miran dissented, favoring a larger 50 basis point cut to provide stronger support for the economy.

Market and Banking Response

  • Major U.S. banks immediately reduced their prime lending rates, which directly affect credit card, loan, and mortgage costs.
  • Stock markets reacted positively, with gains across U.S. and global exchanges.
  • Bond yields adjusted lower as investors priced in additional cuts later this year.

What This Means for Consumers

  • Borrowers: Expect gradual relief in loan EMIs, credit card interest, and mortgage payments.
  • Savers: Deposit rates and fixed-income yields may decline.
  • Businesses: Cheaper credit could support investment in housing, durable goods, and expansion.

Looking Ahead

The Fed has two more meetings in October and December 2025. Analysts expect further cuts if:

  • The labor market continues to weaken, or
  • Inflation shows steady decline toward the 2% target.

However, the central bank emphasized its data-driven approach, balancing risks of high inflation with the need to sustain employment.

The Bigger Picture

This rate cut marks a significant policy shift after a year of holding rates steady. While it offers relief to borrowers, the move underscores concerns that the U.S. economy may be slowing more than expected.

The Fed’s next steps will depend on upcoming jobs data, inflation trends, and global market conditions, making the final quarter of 2025 crucial for economic outlook.

Fed cuts rates first time 2025 Fed monetary policy Fed rate cut 2025 Fed September 2025 meeting Jerome Powell Fed update US economy slowdown US Federal Reserve interest rate
Follow on Telegram
Share. Facebook Twitter Telegram WhatsApp Threads Email
Editorial
  • Website

At POST CARD NEWS, our team works hard to bring you the latest news and updates from across the country. We focus on giving correct and useful information that helps readers stay informed. Every article is written with care so that it is easy to understand and valuable for our audience. If you have any suggestions, you can contact us at contact@postcard.news.

Add A Comment
Leave A Reply Cancel Reply

Subscribe to News

Get the latest sports news from NewsSite about world, sports and politics.

Economy News

iValue Infosolutions IPO Opens: Price Band, GMP & Subscription Status

By EditorialSeptember 18, 2025

Bengaluru-based technology solutions provider iValue Infosolutions Ltd. has launched its ₹560.29 crore initial public offering…

Pakistan Defeat UAE by 41 Runs, Secure Super Four Spot in Asia Cup 2025

September 18, 2025

U.S. Federal Reserve Cuts Interest Rates for First Time in 2025: What It Means for Economy and Borrowers

September 18, 2025
Top Trending

iValue Infosolutions IPO Opens: Price Band, GMP & Subscription Status

By EditorialSeptember 18, 2025

Bengaluru-based technology solutions provider iValue Infosolutions Ltd. has launched its ₹560.29 crore…

Pakistan Defeat UAE by 41 Runs, Secure Super Four Spot in Asia Cup 2025

By EditorialSeptember 18, 2025

Pakistan overcame early batting struggles to register a 41-run victory over the…

U.S. Federal Reserve Cuts Interest Rates for First Time in 2025: What It Means for Economy and Borrowers

By EditorialSeptember 18, 2025

The U.S. Federal Reserve has reduced its key interest rate by 25…

Facebook X (Twitter) WhatsApp Instagram

News

  • Education
  • Lifestyle
  • International
  • Entertainment
  • Tech
  • Economy
  • Astrology

Pages

  • About Us
  • Disclaimer
  • Editorial Policy
  • Contact Info
  • Do Not Sell Data
  • GDPR Policy
  • Media Kits

Services

  • Subscriptions
  • Customer Support
  • Bulk Packages
  • Newsletters
  • Sponsored News
  • Work With Us

Subscribe to Updates

Get the latest news updates around the world directly into your mailbox.

Copyright © 2025 • POSTCARD.NEWS | Managed Privately – Read More.
  • Privacy Policy
  • Terms
  • Sitemap

Type above and press Enter to search. Press Esc to cancel.