Federal Reserve cuts interest rates for first time this year, sees 2 more cuts in 2025

The Federal Reserve [cut interest rates by a quarter percentage](https://finance.yahoo.com/news/federal-reserve-cuts-interest-rates-for-first-time-this-year-sees-2-more-cuts-in-2025-180107133.html) point Wednesday, its first reduction of 2025, and projected two more cuts for the rest of this year.

The central bank voted in a split decision to cut its benchmark interest rate to a range of 4.00% to 4.25%. The 25-basis point cut marked the first time the Fed has eased rates since last December.

Newly confirmed Fed governor Stephen Miran disagreed with the decision and preferred to cut rates by a half a percentage point.

The median estimate from all Fed officials is that there will be two more rate cuts this year, up from a prior estimate released in June, as the labor market softens while inflation remains sticky.

“Job gains have slowed, and the unemployment rate has edged up. But remains low,” officials said in their statement. A downgrade from the July meeting statement’s characterization of labor market conditions as “solid.”