The US Federal Reserve has announced its first interest rate cut of 2025, lowering the benchmark rate by 25 basis points (0.25%) to a range of 4.0–4.25%, down from 4.25–4.50%. This move comes amid repeated pressure and criticism from President Donald Trump, who has been calling for rate cuts since taking office.
Experts believe the decision will have implications for Asian markets, including India. Following the Federal Open Market Committee’s two-day meeting, Chair Jerome Powell stated that economic activity in the US is slowing, job growth is under pressure, and inflation remains elevated — prompting the rate reduction. Powell also signaled that further cuts may follow later this year to counter tariff-driven inflationary pressures.