Trendex Official

The US Federal Reserve has cut interest rates by 25 bps, a move that was widely expected to be made amid sweeping changes in the US economy. The Fed previously left interest rates unchanged in July 2025, and this is the first reduction in rates since December 2024. Interest rates now sit at 4%-4.25%, the lowest since December 2022.
First Interest Rate Cut Since December, A Needed Move?
In a press release, the Fed acknowledged that economic growth in the first half of the year “moderated” and the job market has “slowed.” “Job gains have slowed, and the unemployment rate has edged up but remains low. Inflation has moved up and remains somewhat elevated,” the Fed said. “In considering additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks.” Only one member of the Fed committee voted against cutting interest rates: an 11-to-1 overall vote.
In addition, Fed officials in their closely watched “dot plot” of individual expectations pointed to two more cuts before the end of the year. The grid, however, showed a wide level of disparity, with one dot, possibly Miran’s, pointing to a total of 1.25 percentage points in additional reductions this year. The plot indicated one cut in 2026 and another reduction in 2027
Following the interest rate cut, Bitcoin rose about 1%. On the stock market, major U.S. stock indexes also rose. Fed Chairman Jerome Powell and the US Central Bank have received persistent calls to lower interest rates by those who say the US economy is performing well. The Trump administration has made several threats to the Fed, calling for rate cuts, including for Powell and his Fed Governor Lisa Cook to be fired. The Fed has been in hot water since the start of the year because of the lack of rate cuts, but now appears to be following through on Trump’s requests.