On September 17, 2025, the U.S. Federal Reserve implemented a 25 basis point rate cut, marking its first reduction of the year. Chair Jerome Powell indicated that the labor market's risks outweighed inflation concerns, though inflation is still expected to stabilize. The Fed revised its GDP growth forecast upward but noted significant uncertainty. Over half of the Fed's officials foresee additional rate cuts by year-end, with potential cuts in October and December.