The Federal Reserve (Fed) price cuts of 2025 confer with a sequence of reductions in rates of interest applied by the central financial institution of the US in response to financial situations. These cuts had been a part of a broader financial coverage technique aimed toward stimulating financial development and sustaining worth stability.
The choice to chop rates of interest was made in response to considerations about slowing financial development and the potential for a recession. By lowering rates of interest, the Fed aimed to make borrowing extra engaging and encourage companies and customers to spend and make investments extra. This, in flip, was anticipated to spice up financial exercise and assist forestall a downturn.