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Fed rate cut is attempt to prevent recession without sending prices soaring

  • Written by Ryan Herzog, Associate Professor of Economics, Gonzaga University
Fed rate cut is attempt to prevent recession without sending prices soaringThe Fed's job can seem like a balancing act.Dimitri Otis/DigitalVision via Getty Images

The Federal Reserve on Sept. 17, 2025, cut its target interest rate as it shifts focus from fighting inflation to supporting the choppy labor market.

As financial markets expected, the Fed lowered rates a quarter point to a range of 4% to 4.25%, its first cut...

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