Fed Abandons Rate Cut Plans as Inflation Persists
The Federal Reserve's anticipated September 2025 rate cut scenario has evaporated amid stubbornly high inflation. Today's FOMC meeting delivered a decisive 25 basis point reduction, setting the new target range at 4.0%-4.25%.
Market participants had priced in more aggressive easing, but persistent price pressures forced policymakers to maintain a restrained approach. The decision reflects growing concerns about inflationary stickiness across service sectors and energy markets.