Headline Roundup • September 17th, 2025
Fed Cuts Interest Rates by a Quarter Point
Economy And Jobs,Federal Reserve,Jerome Powell,Jobs Report,Inflation,Bureau Of Labor Statistics,Interest Rates
Summary from the AllSides News Team
The Federal Open Market Committee (FOMC) reduced its baseline interest rate by 0.25 percentage points on Wednesday, bringing the new range to 4-4.25%.
The Details: Stephen Miran, a former Trump adviser who was sworn into the FOMC this week, reportedly supported a larger rate cut and was the only voting committee member to oppose the 11-1 vote. Committee Chair Jerome Powell voted in favor of the cut, despite previous concerns of its inflationary effects. The Fed is also expected to release plans for additional rate cuts in the future, in a continued effort to strengthen the labor market and lower consumer borrowing rates.
Key Quotes: The cut comes “in light of the shift in the balance of risks,” according to the Fed. The committee stated, “Job gains have slowed, and the unemployment rate has edged up but remains low. Inflation has moved up and remains somewhat elevated.”
For Context: The US added nearly a million fewer jobs over the last year than what was previously reported, according to a Bureau of Labor Statistics (BLS) report revised in September. The Fed considers jobs data, including hiring and unemployment trends, as factors when adjusting interest rates. President Donald Trump has criticized purportedly “rigged” BLS data. Wholesale inflation dropped 0.1% in August from the previous month, but the Consumer Price Index (CPI) rose 0.4%.
How The Media Covered It: Initial coverage was similar across the political spectrum, with little bias noted. Outlets on the left and in the center, such as USA Today (Lean Left bias) and The Hill (Center), were marginally more focused on economic concerns pertaining to inflation and employment, while outlets on the right, such as New York Post (Lean Right), framed the story more optimistically.
Written by the AllSides staff (of humans). Learn more. Support our mission. Suggest an improvement to this summary.
Featured Coverage of this Story
The Federal Reserve cut interest rates by a quarter point as central bankers said worries about a wobbly US job market have begun to outweigh anxieties over inflation.
Eleven of the Fed’s 12 central bankers voted for the regular-size cut including Fed Chairman Jerome Powell, who has spent most of the year deflecting attacks from President Trump over his refusal to lower rates.
The exception was Stephen Miran, who instead voted for a jumbo-size, half-point cut — one day after he left his position as Trump’s economic adviser to become...
The Federal Reserve cut interest rates Wednesday for the first time this year as the central bank attempts to ease pressure on the weakening U.S. job market.
The Federal Open Market Committee (FOMC) — the panel of Fed officials responsible for setting borrowing costs — cut its baseline interest rate to a range between 4 percent and 4.25 percent, a reduction of 0.25 percentage points.
Analysts and traders widely expected the Fed to cut interest rates Wednesday after several months of alarming employment data and unprecedented pressure from President Trump,...
Elizabeth Frantz, REUTERS
After nine months of staying on the sidelines, the Federal Reserve on Sept. 17 announced a quarter-percentage-point cut, likely the first in a series of reductions to usher in lower borrowing rates for consumers.
The rate cut – the Fed’s first since late 2024 – lowers the Fed’s benchmark interest rate to a range of 4% to 4.25%. Officials signaled the possibility of two more rate cuts this year.
Typically, the Fed hikes rates or keeps them steady to tame inflation. The central bank lowers rates to juice the economy....
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