Fed Lowering Interest Rates September 2025. The federal open market committee chose to lower its key overnight borrowing rate by a half percentage point, or 50 basis points, amid signs that inflation was moderating and the labor market. Fixed income markets now project that the decline in interest rates by the end of 2025 could be substantial.
Lower interest rates mean lower borrowing costs for consumers and. Financial experts expect that the federal reserve will cut the federal funds rate in september, the first rate cut of 2025.