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<\/p>\nOn September 17, 2025, the Federal Open Market Committee (FOMC) announced a widely expected decision to cut interest rates by 25 basis points, bringing its benchmark rate down to the 4.00\u20134.25% range. This marks the first step in a gradual easing of monetary policy after a long period of restrictive measures aimed at controlling inflation.<\/p>\n
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Gold reation to the rate cut report (5m timeframe, Trendo Trading Platform)<\/strong><\/p>\n With the Trendo trading platform<\/a>, in addition to accessing the economic calendar<\/a> and tracking key decisions such as Federal Reserve meetings, you can monitor the markets in real time using a comprehensive suite of technical analysis tools<\/a> and manage your trading opportunities effectively.<\/p>\n \n Alongside this decision, the Federal Reserve released its Summary of Economic Projections, painting a more optimistic picture of the U.S. economic outlook.<\/p>\n GDP Growth:<\/strong> The forecast for 2025 was revised upward from 1.4% to 1.6%. Growth is also projected to continue in 2026 and 2027, reflecting policymakers\u2019 stronger confidence in the resilience of the economy.<\/p>\n<\/li>\n Unemployment Rate:<\/strong> Forecasts for the coming years were adjusted slightly lower than the previous report \u2014 4.4% in 2026 and 4.3% in 2027.<\/p>\n<\/li>\n Inflation (PCE):<\/strong> The 2025 estimate remains unchanged at 3%, while 2026 is now projected at 2.6%. This suggests the path toward the 2% target will be gradual.<\/p>\n<\/li>\n Interest Rates:<\/strong> The most significant shift concerns the interest rate trajectory. The year-end 2025 forecast was lowered from 3.9% to 3.6%, and projections for 2026 and 2027 were revised to 3.4% and 3.1%, respectively. This indicates that the pace of rate cuts will be faster than previously anticipated.<\/p>\n<\/li>\n<\/ol>\n Learn more:<\/strong> The Impact of Federal Reserve Interest Rates on the Forex Market<\/a><\/p>\n \n Federal Reserve Chair Jerome Powell emphasized during the post-meeting press conference that the decision was primarily a response to risks in the labor market. According to him, the rate cut can be seen as a form of \u201c<\/strong>risk management easing\u201d<\/strong>, given evident signs of weaker employment and declining labor demand.<\/p>\n Powell stated: \u201cI can no longer say the labor market is strong.\u201d<\/em> He pointed to reduced immigration and a drop in labor force participation as key factors behind lower employment, adding: \u201cThose on the margins of the labor market are now finding it harder to get jobs.\u201d<\/em><\/p>\n However, Powell stressed that the Fed does not see a need for rapid rate cuts and that monetary policy is not locked into a pre-set path. He noted that inflation risks have eased, although trade tariffs could temporarily add upward pressure on prices.<\/p>\n \n This move signals a gradual shift in the Fed\u2019s balance between its two main goals: controlling inflation and supporting employment. Over the past two years, the primary focus had been on taming inflation, but rising labor market risks are now prompting a more balanced approach.<\/p>\n The economic projections indicate that policymakers are more optimistic about the economy\u2019s resilience and view a modest pace of rate reductions as the most suitable course. This adjustment could provide a positive signal for stock and bond markets, as faster rate cuts mean lower financing costs and greater appeal for riskier assets.<\/p>\n That said, uncertainty remains around the inflation outlook and the effects of tariffs. Powell himself stressed that monetary policy decisions must continue to be made \u201cmeeting by meeting\u201d<\/strong> based on incoming data.<\/p>\n \n The Fed\u2019s decision to cut rates by 25 basis points marks a turning point in U.S. monetary policy. While modest in scale, this move, coupled with the shift in tone from policymakers, signals the start of a new phase in the policy cycle \u2014 one where employment concerns are given greater weight alongside inflation control.<\/p>\n For the latest economic news and analysis, follow us on Telegram<\/strong><\/a> and Instagram<\/strong><\/a>. Through the Trendo trading platform, you can also access a full range of analytical tools and trade gold and the U.S. dollar with the lowest spreads and commissions.<\/p>\nFederal Reserve Economic Outlook | Rate Cuts and U.S. Growth Prospects<\/h2>\n
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Jerome Powell\u2019s Remarks Following the September 17 Meeting<\/h2>\n
Implications of the Rate Cut for Markets and the Economy<\/h2>\n
Summary<\/h2>\n