The Federal Reserve has officially cut interest rates for the third time this year, lowering the federal funds rate by 0.25% to a range of 3.50%–3.75%.
The Fed rate decision followed a widely watched FOMC meeting, where policymakers debated how to manage slowing job growth, persistent inflation and mounting political pressure.
While many asked, “Did the Fed cut rates today?” — the answer is yes. But the future path of Fed rate cuts remains far from settled.
Markets immediately reacted:
- Mortgage rates today inched lower but remain sensitive to the Fed’s outlook.
- The 10-year Treasury yield fluctuated as traders reassessed economic risks.
- The VIX spiked briefly on uncertainty surrounding the Fed’s next move.
Fed Rate Cut Today: What Jerome Powell Said
Fed Chair Jerome Powell delivered the closely watched Powell speech today, saying the central bank is now in “wait and see” mode.
He emphasized:
- The Fed needs time to observe how recent interest rate cuts affect the economy.
- Policymakers face unusual tension between rising unemployment and stubborn inflation.
- The internal debate is intense — making future decisions uncertain.
This Fed announcement today showed that divisions inside the FOMC are widening, a rare and important signal for investors tracking Fed news and business news today.
FOMC Meeting Highlights: Disagreement Over the Path Ahead
At the FOMC meeting today, three officials dissented:
- Stephen Miran wanted a larger rate cut (0.50%).
- Austan Goolsbee and Jeffrey Schmid wanted no cut at all.
This split reflects deeper uncertainty over:
- Whether more interest rate cuts are needed
- How quickly inflation will fall
- Whether unemployment will worsen
The Fed’s updated dot plot points to one additional rate cut in 2026, but analysts warn that real-time data could push the Fed toward a different path.
How the Fed Cut Rates Impacts Mortgage Rates Today
Borrowers tracking mortgage rates, mortgage interest rates, and housing markets are asking:
Will mortgage rates drop now that the Fed cuts interest rates?
Here’s the key:
The Fed does not directly set mortgage rates, but its decisions affect:
- The 10 year Treasury
- Market expectations
- Bond yields that influence home-loan pricing
After the Federal Reserve interest rate cuts, early indications show mortgage rates today dipping slightly — though analysts say more declines depend on future Fed decisions.
10-Year Treasury Yield Reacts to Fed Decision
The 10 year Treasury yield, a benchmark for global markets, initially fell after the Fed announcement, reflecting:
- Softer economic outlook
- Expectations of slower inflation
- A belief that the Fed may pause before further rate cuts
Treasury yields will remain volatile until investors gain more clarity at the next Federal Reserve meeting.
Did the Fed Cut Rates Today? Yes — but Future Cuts Are Uncertain
This Fed cut follows months of debate, but Powell warned that:
- The Fed is not committing to additional cuts
- Interest rates today may remain restrictive for longer
- Upcoming labour and inflation data could shift the outlook
Markets are now watching:
- The next Fed meeting December
- Updated inflation reports
- The job market slowdown
Fed Cuts Rates 2025: What to Expect Going Forward
Economists say the timeline for future Fed rate cuts 2025 may depend on:
- Labour Market Stability
- Inflation returning toward 2%
- Political pressure, including from the White House
- Volatility indicators like the VIX
- Treasury market behavior
When Was the Fed Meeting Today?
For readers searching “what time is the Fed meeting today?”, Powell’s press conference followed the standard schedule:
- FOMC statement: 2:00 PM ET
- Jerome Powell news conference: 2:30 PM ET
Both were streamed across major outlets offering FOMC live and Fed meeting live coverage.
Market Reaction After the Fed Interest Rate Decision Today
Stocks moved sideways as investors tried to interpret a dovish-but-uncertain message.
Bond yields dipped.
Mortgage lenders adjusted pricing models.
Analysts now say the next few weeks — including new inflation and labour-market data — will determine whether:
- The Fed pauses
- The Fed signals more easing
- The Fed reverses course entirely
Final Takeaway: The Fed Cut Rates, but the Debate Has Just Begun
Today’s Federal Reserve interest rate cut marks a significant moment in monetary policy, but the uncertainty ahead is even more significant.
Millions of Americans watching:
- Mortgage rates news
- Interest rates
- Fed rates
- Federal interest rate plans
…will be paying close attention to every Fed announcement, every Powell speech, and every Fed decision in 2025.
