Fed officials cut interest rate quarter-point after blocking Trump agenda for months

The Federal Reserve Board of Governors on Wednesday cut interest rates one-quarter of a point, establishing the benchmark at 4% to 4.25%, after blocking President Donald Trump’s economic agenda – building back America’s business interests, manufacturing and expansion, for months.

JUST ANNOUNCED: The Federal Reserve has just CUT RATES by 0.25%. Thanks, President Trump! #BullMarket

Fed Chair Jerome Powell: “Today, the Federal Open Market Committee decided to lower our policy interest rate by 1/4 percentage point.”

THE GOLDEN AGE OF AMERICA BEGINS RIGHT… pic.twitter.com/2Y6HImPR4q

— AJ Huber (@Huberton) September 17, 2025

Chair Powell answers reporters’ questions at the FOMC press conference on September 17, 2025. https://t.co/siWde1Rh9D pic.twitter.com/1WAeJW72YS

— Federal Reserve (@federalreserve) September 17, 2025

The Dow Jones Industrial Averages, which had been percolating in the mid to upper 45,000 range, promptly surged past 46,000 and actually closed the day there.

The reduction was the first from the controversial Fed operations since 2024.

Officials did signal the possibility for two more cuts later this year, reports confirmed.

“Recent indicators suggest that growth of economic activity moderated in the first half of the year,” said the Federal Open Market Committee. “Job gains have slowed, and the unemployment rate has edged up but remains low. Inflation has moved up and remains somewhat elevated.”

Stephen Miran, Trump’s newest Fed appointee, had wanted a half point cut. And Lisa Cook, under investigation on allegations of mortgage fraud and fighting Trump’s decision to fire her, voted with others for the quarter point cut.

The benchmark had been, before Wednesday’s announced, at 4.5% to 4.25%.

Interest rates had exploded to more than 9% under Joe Biden’s tenure in the White House, and Trump has been working to expand America’s economic base, return manufacture to its shores, obtain fair international trade agreements and much more while trying to keep inflation low and job creation up. Both of those figures have been moderate in recent assessments.

America’s housing industry, which has been stalled because of the interest rates mandated by Fed chief Jerome Powell, could start seeing an increase in activity because of Wednesday’s decision.