The Fed cuts rates by 25 points

ROME – The Fed is cutting rates for the first time in 2025. The cost of borrowing is dropping by a quarter of a percentage point, to a range between 4.0% and 4.25% . The U.S. central bank plans two more similar cuts, each of 25 basis points, by the end of the year. The institution, led by Jerome Powell, also forecasts core inflation of 3% by December 31.

In the statement announcing its decision, the FOMC explained that in the near future it would "carefully assess incoming data, the evolving outlook, and the balance of risks ." Furthermore, the Governing Committee declared itself "strongly committed to supporting maximum employment and returning inflation to its 2% objective" and therefore "would stand ready to adjust the stance of monetary policy , if necessary, should risks emerge that could hinder the achievement of its objectives."

news being updated