Federal Reserve Cuts Interest Rates Due to Deteriorating Job Market in First Cut of 2025

The Federal Reserve announced its first interest rate cut since December 2024, citing a deteriorating job market as the primary reason for the shift in stance. The Federal Open Market Committee (FOMC) declared at its September meeting today that it would be lowering interest rates by a quarter-percentage point to 4% - 4.25%, a decision that was widely expected by financial experts.

This decision comes as a result of the ongoing challenges facing the job market, with unemployment rates continuing to rise and job growth slowing down. According to the FOMC statement, "The labor market has weakened in recent months, with job gains slowing and unemployment rates rising. This has prompted the Federal Reserve to take action in order to stabilize the economy and support job growth." The Fed also noted concerns about inflation, stating that it is currently below its target of 2%.

This move has been met with mixed reactions, with some praising the Fed for taking proactive measures to address the struggling job market, while others criticize the decision as being too little, too late. The rate cut is expected to have a significant impact on the real estate market, as it will likely lead to lower mortgage rates and make it more affordable for potential buyers to enter the