Today, September 18, 2025, the Federal Reserve lowered its target range for the federal funds rate by 0.25 percentage points to 4 to 4.25 percent. This is the first rate cut since December 2024. The Fed did this to support maximum employment and to respond to signs of a slowdown in job gains, while inflation remains somewhat elevated. Alongside the rate cut, the Fed's Open Market Desk was directed to conduct open market operations to maintain the federal funds rate within this new target range, and other monetary policy implementation decisions were made such as adjustments to repurchase agreements and reinvestments of securities. The Board also approved a quarter-point decrease in the primary credit rate to 4.25 percent effective today. The decision was mostly unanimous, with one dissenting vote preferring a larger cut. The Fed signaled it will carefully assess incoming data and risks before further rate adjustments.