After a lengthy pause, the Federal Reserve on Sept. 17 announced a quarter percentage point cut to its benchmark interest rate. Economists say it is likely the first in a series of reductions that should make borrowing more accessible for consumers.

Fed Chair Jerome Powell described the reduction as “a risk-management cut” against the growing downside risks to employment. But with inflation still above the Fed’s 2% target – typically justification to raise rates or keep them steady – Powell acknowledged that the Fed faces “no risk-free path” in its decisions moving forward.

That uncertainty over risks was apparent in the Fed’s projections on future rate cuts, which showed a broad range of opinions among officials.

To continue reading the rest of the article, please click on the source link below;

https://www.usatoday.com/story/money/2025/09/18/federal-reserve-interest-rate-impact-borrowing/86182952007/