The entire announcement:
Recent indicators suggest that growth of economic activity moderated in the first half of the year. Job gains have slowed, and the unemployment rate has edged up but remains low. Inflation has moved up and remains somewhat elevated.The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated. The Committee is attentive to the risks to both sides of its dual mandate and judges that downside risks to employment have risen.
In support of its goals and in light of the shift in the balance of risks, the Committee decided to lower the target range for the federal funds rate by 1/4 percentage point to 4 to 4‑1/4 percent. 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. The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective.
In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals. The Committee's assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.
Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michael S. Barr; Michelle W. Bowman; Susan M. Collins; Lisa D. Cook; Austan D. Goolsbee; Philip N. Jefferson; Alberto G. Musalem; Jeffrey R. Schmid; and Christopher J. Waller. Voting against this action was Stephen I. Miran, who preferred to lower the target range for the federal funds rate by 1/2 percentage point at this meeting.
With that, the belief that the rate cut had been already "priced in" by markets began to circulate through the various media channels and advisory pundits. It didn't take long, however, for futures markets to express true investor sentiment as shortly after the cash market close, prices began ramping higher, to a point at which, by early morning in America, stock futures were signaling a buying frenzy. By 8:00 am Thursday, Dow futures were up 240 points, NASDAQ futures gained 275, and S&P futures were ahead by 50 points.
There was little to argue concerning the Fed's rationale, despite their own admission that inflation remained well above their preferred two percent annual level. Employment, which had been shaded to the positive by the corrupt BLS, had finally been exposed as well below replacement and growth potential, when the agency admitted the largest "error" in its history: a 911,000 shortfall from reported numbers. Essentially, what the BLS said was that lopping off an average of 80,000 jobs in the 12-month period from April 2024 to March 2025 from their rosy monthly releases would result in a more accurate assessment of job gains. That reassessment of U.S. employment sealed the deal for at least a 25 basis point cut, with more likely to follow.
In the aftermath of the policy decision, quants, savants, and expert Fed watchers pored over the quarterly Summary of Economic Projections provided by FOMC members and, in the usual Wall Street groupthink herd behavior decided that stock prices were currently not quite high enough in consideration of the Fed's thinking towards the future.
Anybody not an expert or otherwise blessed with divination skills on a level with Delphic oracles can clearly see where this is headed. The Fed, while coming close to their "price stability" target inflation rate of two percent, wherein prices double in a mere 40 years, were never really serious about tamping down inflation, and now have completely abandoned the idea of keeping consumer prices in line with average incomes. Prices for essentials and non-essentials alike now have a green light to double in just 25 years, maybe 20, or 10, or possibly sooner. Hyperinflation cannot be ruled out at this juncture.
Maybe President Trump is indeed playing 5th dimension chess with the global economy, his plan to complete the full debasement of the currency, eliminated the Fed and issue currency directly from the Treasury, maybe even back it with gold. Trump's "golden age" for America may prove to provide a wide-ranging ride of emotional pain and euphoria along the way to his perception of prosperity.
For now, the public be damned, President Trump is ultimately going to be granted his wish for ever lower interest rates. Chairman Powell's term expires in May 2026, a mere eight months from now. Before then, the Fed is expected to lower rates by 0.25% at least one more time, probably twice, and possibly as early as the November and December meetings. Wall Street's lascivious habit of relying on the Federal Reserve's interest rate policy for price discovery will continue.
Among the more questionable, if not overtly humorous anecdotes of this most recent Fed motion, was recently appointed board member - and the architect of Trump's tariff and overall economic policies - Stephen Miran's vote for a cut of 0.50% at this meeting (denied) and his assessment of appropriate monetary policy for this year of 2.88%, well below all other members and somewhat out in economic left field.
Assessing the current and forward conditions, it appears that the bubble economy will chug forward towards glorious new highs for stocks and prices of everything from milk to Macadamia nuts.
At the Close, Wednesday, September 17, 2025:
Dow: 46,018.32, +260.42 (+0.57%)
NASDAQ: 22,261.33, -72.63 (-0.33%)
S&P 500: 6,600.35, -6.41 (-0.10%)
NYSE Composite: 21,439.90, +64.71 (+0.30%)
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