Fed Releases Policy Statement at 2 p.m. ET After Two-Day Meeting

Lead The Federal Reserve’s Federal Open Market Committee concluded its two-day session on Sept. 17 in Washington and released its policy statement at 2 p.m. ET, marking the start of expected rate cuts to support a weakening labor market.

Nut Graf Investors and policymakers have focused on signs of slowing job growth and persistent inflation, prompting the Fed to signal a quarter-point reduction in borrowing costs-the first cut since December 2024-to balance its dual mandate of price stability and full employment.

Meeting Highlights

Timing and Format
Statement released at 2 p.m. ET on Wednesday, Sept. 17, following the conclusion of the FOMC’s Sept. 16-17 meeting.
Chair Jerome Powell will hold a press conference at 2:30 p.m. ET to explain the decision.
Rate Decision
Committee projected a 25-basis-point cut in the federal funds rate, lowering the target range to 4.00%-4.25%.
Market odds for a quarter-point move exceeded 90%, based on futures data.
Economic Rationale
Fed officials cited a cooling labor market and elevated unemployment risks as reasons to begin easing policy.
Persistent inflation above the 2% goal remains a concern, but officials judged that slowing job growth poses greater near-term risks.
Forward Guidance
The updated Summary of Economic Projections (dot plot) will show members’ views on future rate paths, including potential additional cuts in October and December.
Officials emphasized that decisions will remain data-dependent, with inflation and employment trends guiding further action.
Market Reaction
U.S. stocks and Treasury yields moved higher in anticipation of lower borrowing costs.
The dollar dipped to near multiyear lows as investors priced in a more accommodative Fed stance.

Outlook With two scheduled meetings remaining in 2025, in October and December, all eyes are on upcoming labor and inflation reports to gauge the pace of future rate reductions.