Federal Reserve prepares to cut interest rates for the 3rd time in 2025

The Fed is set to cut rates by 25bps today, which will be its third cut of 2025, bringing the target range to 3.5%–3.75%.

Officials are deeply divided; some warn more cuts could fuel inflation, others see risks in a softening labor market.

This will likely be a “hawkish cut,” where Powell signals no guarantee of another cut soon.

Markets have priced in the move, but all eyes are on Powell’s press conference and the language in the FOMC statement.