The Brief The Fed cut its key rate to 4.1% and signaled two more cuts this year. The Federal Reserve cut its key interest rate by a quarter-point and indicated that two more cuts could follow before the end of the year. The Fed has been under relentless pressure from President Donald Trump to cut rates. The Marriner S. Eccles Federal Reserve building in Washington, DC, US, on Sunday, Jan. 12, 2025. Fed officials also signaled that they expect to reduce their key rate twice more this year, but just once in 2026, which may disappoint Wall Street.