The last Federal Reserve rate cut occurred in December 2024. Since then, the federal funds rate target range has been held steady at 4.25%–4.50% through multiple meetings in 2025 up to July 30, 2025. The Fed has not cut rates in 2025 yet but is widely expected to make its first rate cut of 2025 at the meeting on September 17, 2025, potentially lowering the rate by 0.25 percentage points.