Fed Rate Cuts
The act of the Federal Reserve lowering its benchmark interest rate to stimulate economic activity. The market is now pricing in significant rate cuts (75-100 basis points) for 2024 due to fears of a recession.
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8/26/2025, 6:14:07 AM
entitydetail.last_updated
8/26/2025, 6:17:38 AM
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8/26/2025, 6:17:38 AM
Summary
The prospect of Fed rate cuts is a significant topic driven by increasing economic uncertainty in the United States, including weak non-farm payrolls and warnings from consumer-facing companies suggesting a potential recession. This domestic economic outlook, combined with the risk of black swan events and broader global financial system fragility (highlighted by the unraveling of the Yen Carry Trade), is leading to expectations that Fed Chair Jerome Powell may implement rate cuts. Such cuts would primarily affect the Federal Funds Rate, influencing bank savings, new loan rates, and credit card variable rates, and are typically decided by the Federal Open Market Committee (FOMC) during its eight annual meetings.
Referenced in 1 Document
Research Data
Extracted Attributes
Governing Body
Federal Reserve (central bank of the United States)
Key Decision-maker
Jerome Powell (Fed Chair)
Impact on Consumers
Lower rates on bank savings, new loans, and credit card variable rates
FOMC Meeting Frequency
Eight times a year
Decision-making Committee
Federal Open Market Committee (FOMC)
Mechanism for Implementation
Open Market Operations (purchase and sale of securities)
Primary Monetary Policy Tool
Federal Funds Rate
Timeline
- The Fed hiked interest rates 17 times in two years, raising the fed fund target rate by 4 percentage points to cool off the economy and a growing real estate bubble. (Source: Web Search Result 2)
Before 2006
- The Federal Reserve cut its key overnight lending rate by a full percentage point. (Source: Web Search Result 1)
2024
- Markets are anticipating that the Federal Reserve will cut interest rates. (Source: Web Search Result 3)
2025-09
Web Search Results
- Here are 4 ways lower interest rates could affect your ...
An interest-rate cut by the Federal Reserve could affect your finances in several ways, from your credit card bills to your personal savings. When the Fed cuts its key overnight lending rate, lower rates on bank savings and loans tend to follow. Any new loan you’re seeking will likely have a lower rate than you would have seen if the Fed hadn’t cut. Your credit card issuerwill lower your variable rate, mimicking whatever rate cut the Fed makes, thoughthere could be up to a three-month lag, McBride said. Remember, the Fed cut rates a full percentage point last year — and the average credit card rate is still over 20%,” McBride said.
- Federal Funds Rate History 1990 to 2025 - Forbes
Forbes Advisor has compiled this history as a handy guide to the course of the federal funds rate and the Federal Reserve’s monetary policy decisions since 1990. The Fed tried to cool off the economy and the growing real estate bubble by hiking interest rates 17 times in two years, raising the fed fund target rate by 4 percentage points over the period. Funnily enough, at least when viewed through the lens of today’s market participants, investors cheered the news and stocks enjoyed an immediate “relief rally.” There were rumblings from some analysts that rates might go even higher, but the Fed held off as inflation plateaued. The FOMC meets eight times a year to make decisions about the federal funds rate and the Fed’s balance sheet.
- Markets are sure the Fed will cut in September, but the path ...
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- United States Fed Funds Interest Rate - Trading Economics
* Interest Rate * Inflation Rate This page provides the latest reported value for - United States Fed Funds Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. United States Fed Funds Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on August of 2025. GDP Growth Rate Core Inflation Rate MoM Core Inflation Rate YoY Core PCE Price Index MoM GDP Price Index Inflation Rate MoM Inflation Rate YoY PCE Price Index MoM House Price Index MoM House Price Index YoY Economic Calendar Historical Data News Stream Earnings Releases Credit Ratings Forecasts Markets Currencies Stocks Commodities Bonds Crypto Get Started Ratings
- Open Market Operations - Federal Reserve Board
Board of Governors of the Federal Reserve System ================================================ _The Federal Reserve, the central bank of the United States, provides the nation with a safe, flexible, and stable monetary and financial system._ * Federal Reserve's Key Policies for the Provision of Financial Services Open market operations (OMOs)--the purchase and sale of securities in the open market by a central bank--are a key tool used by the Federal Reserve in the implementation of monetary policy. From the end of 2008 through October 2014, the Federal Reserve greatly expanded its holding of longer-term securities through open market purchases with the goal of putting downward pressure on longer-term interest rates and thus supporting economic activity and job creation by making financial conditions more accommodative.