Fed Report – September 17, 2025

The Federal Reserve begins its two-day meeting today, with markets expecting a 0.25% rate cut, the first since 2024. The move comes as the job market weakens while inflation stays above the Fed’s 2% target.

Key points:

Labor market: Slowing job growth and rising unemployment claims.

Inflation: Still sticky at about 2.9% annually.

Housing: Mortgage rates remain high; PIMCO urges the Fed to stop reducing mortgage-backed securities to ease borrowing costs.

Politics: Fed independence under spotlight after Lisa Cook court ruling and new Trump-era governor Stephen Miran sworn in.

Markets: Dollar weakens as investors expect more cuts ahead.

Americans can expect slightly lower borrowing costs if the Fed cuts, but housing affordability and inflation pressures remain major challenges.