World Business Report US Federal Reserve cuts interest rates
Sep 17, 2025
The US Federal Reserve's first interest rate cut during Trump's second term sparks discussions on its impact on businesses. Two entrepreneurs share their insights on how this decision might influence small manufacturers and caterers. Meanwhile, Trump receives a grand welcome during his UK state visit, coinciding with significant tech deals valued between $25 and $42 billion. A former deputy ambassador weighs in on whether such high-profile visits genuinely enhance economic relationships.
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Fed Lowers Rates Amid Cooling Jobs Market
- The Federal Reserve cut rates by 0.25% to 4–4.25% citing softer jobs and elevated inflation risks.
- Markets expect further cuts later in the year as policymakers shift to support employment.
Split Decision Signals More Cuts Likely
- The decision was not unanimous and some Fed members sought larger cuts under political pressure.
- Investors already price in more reductions before year-end, signalling market conviction.
Invest In Equipment While Rates And Tax Perks Align
- Use bonus depreciation and lower borrowing costs to invest in capital equipment now.
- Combine tax incentives with slightly lower rates to modernize manufacturing affordably.