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September 18, 2025

Federal Reserve cuts key rate by quarter-point, signals two more cuts this year

  • Concern is growing at the central bank about the health of the nation's labor market.
    • By CHRISTOPHER RUGABER
    AP Economics Writer

    iStock image
    Fed officials also signaled that they expect to reduce their key rate twice more this year, but just once in 2026, which may disappoint Wall Street.

    WASHINGTON — The Federal Reserve cut its key interest rate by a quarter-point Wednesday and projected it would do so twice more this year as concern grows at the central bank about the health of the nation's labor market.


     
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