The Federal Reserve cut rates by 25 bps in September 2025, lowering the federal funds rate to 4.00%-4.25%, its first reduction since December. The Fed signaled another 50 bps of easing by year-end and a quarter-point in 2026. 

The dollar index stayed above 97 on Thursday after a sharp rebound, as traders weighed the Fed’s outlook. The central bank projected two more cuts in 2025 and one in 2026, less than markets expected. Chair Jerome Powell framed the move as “risk management” with labor weakness, stressing no urgency for faster easing. 

Check out today's analysis for more updates!