The Fed’s September Cut: A Small Move with Big Implications

On 17 September 2025, the U.S. Federal Reserve delivered its first interest rate cut in nearly a year, trimming the federal funds rate by 25 basis points. While modest, this move signals a clear shift in policy. The Fed is no longer focused solely on taming inflation but is also responding to slower growth, a cooling labour market, and rising global risks. What may look like a small adjustment could have far-reaching consequences for households, businesses, and financial markets around the world.