US Fed September 2025 meeting: Jerome Powell-led FOMC likely to cut rates; key things to know

US Fed September 2025 meeting: The US Federal Reserve's two-day meeting is set to begin on September 16 and will end on September 17 with the latest policy decision, followed by a press conference by Fed Chair Jerome Powell.

There are heightened expectations that the Federal Open Market Committee (FOMC) will cut its interest rate for the first time this year. This comes amid the slower job growth and other factors.

As per the latest data by the Bureau of Labour Statistics (BLS), the US added just 22,000 jobs in August 2025, which is the lowest since October 2021. The report also stated that 13,000 jobs were lost in June.

The unemployment rate for last month climbed to 4.3%.

The CME Fed funds futures indicate a 96.1% probability of a 25 basis point cut in the main interest rate at the current meeting.

US Fed interest rate decision: Date and time

The two-day FOMC meeting will begin on September 16 and will conclude on September 17.

The decision will be announced by Fed chairman Jerome Powell on Wednesday at 2:00 PM Eastern Time (11:30 PM Indian Standard Time).

What will happen if the Fed maintains the status quo or cuts rates by 25 bps or 50 bps?

If a 25 basis point rate cut is announced, the markets are unlikely to react sharply in either direction, as this will be in line with the expectations.

If a mega rate cut of 50 bps is announced, the investor sentiments could improve sharply and markets could gain.

However, if the Fed, by any chance, decides to keep the interest rate steady, the market could fall in disappointment.

July Fed policy outcome

The US Fed Reserve had kept the interest rate unchanged between 4.25% and 4.5% in the July meeting. The central bank had last changed the benchmark interest rate in December 2024.