The Federal Reserve’s Federal Open Market Committee (FOMC) meeting is a pivotal event where policymakers deliberate on monetary policy, primarily focusing on setting the federal funds rate to influence economic growth, inflation, and employment.
This week, the FOMC meeting for September 2025 is underway, drawing intense scrutiny from investors, businesses, and consumers alike. Everyone is waiting for the Fed rate decision because it directly affects borrowing costs for everything from mortgages to business loans, sways stock and bond markets, and shapes the broader economy’s trajectory.
With the fed meeting today and the fed announcement on the horizon, the federal reserve’s move could either stabilize or jolt financial landscapes worldwide.
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When is the Fed Meeting and Rate Decision Announced?
The Federal Reserve’s FOMC convenes eight times a year, with each meeting spanning two days to review economic data and policy options. The Fed interest rate decision is typically announced on the second day, immediately following the conclusion of deliberations.
For the September 2025 gathering, the schedule is set for Tuesday, September 16, and Wednesday, September 17. The announcement is expected at 2:00 PM ET, followed by a press conference from Fed Chair Jerome Powell at 2:30 PM ET. This timing allows markets to digest the news in real-time, often leading to immediate volatility.
Recap of Previous FOMC Meetings in 2025
The FOMC’s 2025 meetings so far have been marked by a cautious stance amid persistent inflation pressures and a resilient yet cooling labor market.
In January (January 28-29), the committee held federal reserve interest rates steady at 4.25%-4.50%, citing balanced risks to its dual mandate; markets reacted mildly positively, with the S&P 500 gaining about 1.5% in the following week as investors welcomed the pause after prior hikes.
March (March 18-19) saw another hold on fed interest rates, despite some early-year inflation upticks, with two members dissenting in favor of a cut. The fed decision triggered a brief stock dip of 0.8% but quick recovery, buoyed by strong corporate earnings.
By May (May 6-7), the fed rate remained unchanged, though projections hinted at future easing; equities surged 2.2% post-announcement, reflecting optimism over moderating wage growth.
June’s meeting (June 17-18) reaffirmed the steady fed interest rates amid mixed data, leading to a 1.1% market rally as tech sectors led gains.
Finally, in July (July 29-30), the committee maintained rates at 4.25%-4.50% for the fifth consecutive hold, with two dissents for a cut; the fed decision sparked a 0.5% S&P decline initially due to tariff-related inflation fears, but it rebounded within days on hopes for September action.
Overall, these outcomes highlight the fed’s vigilance on federal reserve interest rates, with market reactions varying from modest dips to gains based on forward guidance.
Is the Fed Going to Cut Rates in September 2025?
We overwhelmingly anticipate a fed rate cut at the September 2025 meeting, with markets pricing in a near-certain 25 basis point reduction to 4.00%-4.25%.
This expectation stems from recent economic indicators signaling a shift in risks. The latest CPI data for August showed a 0.3% monthly increase and 2.9% year-over-year, slightly above target but cooling from prior peaks, easing some inflation worries.
PPI for August edged down 0.1% monthly, with core measures up 2.8% annually, indicating producer prices are stabilizing without aggressive pass-through to consumers.
The NFP jobs report for August added just 22,000 positions – far below expectations – with downward revisions of 911,000 jobs from earlier estimates, pushing unemployment to 4.3% and underscoring labor market softness.
Fed Chair Jerome Powell’s recent comments at the Jackson Hole Symposium further fuel optimism for rate cuts. In his August 22 address, Powell noted the “shifting balance of risks” toward employment concerns over inflation, stating that “with policy in restrictive territory, the baseline outlook… may warrant adjusting our policy stance.” He emphasized tariffs’ potential as a temporary price shock rather than persistent inflation driver, opening the door to easing.
Market Impact of Fed Interest Rate Cuts
a) Stock Markets
Fed rate cuts typically boost equities by lowering borrowing costs for companies, spurring investment, and fostering growth optimism.
b) Crypto Markets
Crypto assets thrive on lower rates due to heightened risk-on sentiment, as investors chase higher yields in speculative arenas.
c) Gold Markets
Gold usually rises when the Fed cuts rates, as lower yields weaken the dollar and enhance its appeal as a non-yielding safe haven.
Also Read – Fed Interest Rates vs Gold Prices
This article is for informational purposes only and should not be considered financial advice. Investing in stocks, cryptocurrencies, or other assets involves risks, including the potential loss of principal. Always conduct your own research or consult a qualified financial advisor before making investment decisions. The author and publisher are not responsible for any financial losses incurred from actions based on this article. While efforts have been made to ensure accuracy, economic data and market conditions can change rapidly. The author and publisher do not guarantee the completeness or accuracy of the information and are not liable for any errors or omissions. Always verify data with primary sources before making decisions.