Wall Street Breakfast Fed cuts rates for first time this year
Sep 17, 2025
The Federal Reserve made headlines with a 25 basis points rate cut, resulting in a dissenting vote. Chair Powell described the decision as a move in risk management, while projections hint at two more potential cuts this year. Market reactions were swift, influencing both equity and Treasury movements. Listeners can expect insights on recommended stocks to consider in light of this monetary shift, including notable picks like Alexander & Baldwin and Merck.
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Fed Lowers Rates With One Dissent
- The Fed cut the funds rate 25 bps to 4–4.25% with 11 of 12 votes in favor.
- The one dissent, Stephen Myron, preferred a larger 50-basis-point move showing some internal disagreement.
Dot Plot Paints A Tenuous Path
- The dot plot shows a median of two more quarter-point cuts this year, but projections are mixed.
- The Fed also raised next-year GDP and core PCE inflation forecasts, indicating uncertainty about the outlook.
Powell Calls Cut 'Risk Management'
- Powell framed the cut as 'risk management' amid weak employment and high inflation.
- Strategists called the Fed divided and cautious, saying future cuts are not guaranteed.