The Big Sip
The take: The Fed put jobs first. Cutting now is the right move.
What happened: On September 17, 2025, the Fed cut rates by 0.25 percentage points (25 basis points) to 4.00–4.25 in an 11–1 vote. New governor Stephen Miran wanted a 0.5-point cut.
Why it matters: August added only 22,000 jobs. Unemployment is 4.3%. Inflation is 2.9%. The risk to jobs now slightly outweighs the higher prices.
What to watch: Markets expect another 0.25-point cut on 28–29 Oct, and a third in December if hiring stays weak.
Reciepts
• The Fed’s statement and implementation note spell out the range and the lone dissent [Primary]. Federal Reserve+1
• Reuters’ wrap confirms two more cuts pencilled in this year [Report]. Reuters
• BLS shows August’s thin job creation and the 911k downward benchmark revision that reset the year’s story [Report]. Bureau of Labor Statistics+1
• A counter-read: political pressure around Lisa Cook and Miran’s fast confirmation made this “the most charged” Fed week in years [Analysis]. Reuters+1
The cut was so expected that traders switched to decaf.