Following comments made by Chairman Jay Powell in late August, suggesting that the Federal Reserve was possibly open to reducing the target rate for its federal funds rate, the Federal Reserve today decided to lower the rate, which comes from its Federal Open Market Committee (FOMC), to 4.0%-to-4.25%. This represents the first rate cut in 2025. Eleven of the Federal Reserve board members voted to cut the rate by 0.25% with one other board member voting to lower the rate by 0.5%. “Both will consequently be at higher levels than without the rate reduction,” he said. It feels like things are at 50-50 in terms of a 0.25% rate cut [in September], with maybe another matching one in October.