By Ted Shoop, Realtor – eXp Realty, Freeport
In its September 16–17 meeting, the Federal Open Market Committee (FOMC) delivered a 25-basis-point cut, bringing the federal funds rate down to the 4.00%–4.25% range. The decision comes amid signs of a softening labor market and inflation that remains stubbornly above the Fed’s 2% goal. In his public comments, Chair Jerome Powell described the economic situation as “challenging,” warning that the Fed must balance the risks of easing prematurely against the need to maintain price stability.
Several Fed officials voiced support for the modest cut but urged vigilance and stated that while the move offers “insurance” against labor weakness, further cuts must be carefully calibrated. Meanwhile, dissenting voices — such as newcomer Board Governor Stephen Miran — advocated for deeper cuts, even half-point moves, reflecting a range of views within the Fed.
Looking ahead, the FOMC’s next meeting is scheduled for October 28–29, 2025. Many economists and market watchers anticipate two more quarter-point reductions (October and December), bringing year-end rates into the 3.50%–3.75% territory. That said, the Fed’s path will remain data-dependent — each move focused on the latest inflation, hiring, and growth figures. This paced easing suggests gradual relief for mortgage, auto, and business borrowing costs — though don’t expect a steep slide overnight.
For help navigating today’s shifting market, contact Ted Shoop, Realtor with eXp Realty in Freeport.
