4E Labs | One Week After the Federal Reserve's Rate Cut in September: Stock Market Pressure, Divergence in Bond Market, and On-Chain Transmission in the Crypto Market
On September 18, 2025, the Federal Reserve implemented its first rate cut of the year, reducing the federal funds rate target range by 25 basis points to 4.00%–4.25%. Chairman Powell characterized this move as a "risk management" style of easing, aimed at alleviating the pressures of a slowing labor market (with only 22,000 jobs added in August and the unemployment rate rising to 4.3%), while still facing constraints from inflation remaining above the 2% target (with an expected annual inflation rate of about 3% for 2025). The dot plot suggests there may be two more gradual rate cuts within the year.