Will the Fed Lower Interest Rates This September?

Economists predict a potential 25 basis point interest rate cut by the Federal Reserve at its upcoming meeting in September, but discussions about further reductions are also ongoing. The official decision is scheduled for September 17th at 9 p.m. Eastern Time. A 25 basis point reduction would bring the target range down to 4.00–4.25 percent. While a larger cut of 50 basis points is less likely, some economists suggest it may be on the table. Why this expectation? A cooling labor market has led to stagnant employment figures in August, and economists believe that focusing on stabilizing jobs is a priority over current inflation concerns.