Powell Signals September Rate Cut as Trump Removes Fed Governor Cook
Fed Chair Jerome Powell explains the rate cut decision as risk management, with most Trump-appointed officials supporting the move.
Summary
On September 18, 2025, the Federal Reserve reduced interest rates by 25 basis points, a decision backed by most Trump-appointed officials, with the exception of new board member Milan, who advocated for a larger 50bps cut. Fed Chair Jerome Powell described the move as part of a risk management strategy and stated that no immediate further rate changes are necessary.
Terms & Concepts
- Interest Rate Cut: A reduction in the Federal Reserve's key interest rates, designed to stimulate economic activity by making borrowing cheaper.
- Federal Reserve Board: The seven-member governing body of the Federal Reserve, responsible for overseeing U.S. monetary policy.