September 17,
2025

Federal Reserve issues FOMC statement

For release at 2:00 p.m. EDT

indicators suggest that growth
of economic activity moderated in the
first half of the year. Job gains have slowed,
and the unemployment rate has edged up but remains
low.
Inflation has moved up and remains
somewhat elevated.

The Committee seeks to achieve maximum employment and
inflation at the rate of 2 percent over the longer run. Uncertainty about the
economic outlook remains elevated. The Committee is attentive to the risks to
both sides of its dual mandate and judges that downside risks to employment have
risen.

In support of its goals and in light of the shift in the
balance of risks, the Committee decided to lower the target range for the
federal funds rate by 1/4 percentage point to 4
to 4‑1/4 percent. In considering
additional adjustments to the target range for the federal funds rate, the
Committee will carefully assess incoming data, the evolving outlook, and the
balance of risks. The Committee will continue
reducing its
holdings of Treasury
securities and agency debt and agency mortgage‑backed
securities. The Committee
is strongly committed to supporting maximum employment and returning inflation
to its 2 percent objective.

In assessing the appropriate stance of monetary policy, the
Committee will continue to monitor the implications of incoming information for
the economic outlook. The Committee would be prepared to adjust the stance of
monetary policy as appropriate if risks emerge that could impede the attainment
of the Committee’s goals. The Committee’s assessments will take into account a
wide range of information, including readings on labor market conditions,
inflation pressures and inflation expectations, and financial and international
developments.

Voting for the monetary policy action were Jerome H. Powell,
Chair; John C. Williams, Vice Chair; Michael S. Barr; Michelle W. Bowman; Susan
M. Collins; Lisa D. Cook; Austan D. Goolsbee; Philip N. Jefferson; Alberto G.
Musalem; Jeffrey R. Schmid; and Christopher J.
Waller. Voting against this action was
Stephen I. Miran, who preferred to lower the target range for the federal funds
rate by 1/2 percentage point at this meeting.