Federal Reserve News: Interest Rate Cuts to End 2025

Last week's Federal Reserve meeting ended with the announcement of a 25-basis-point interest rate cut, which is the third of 2025. This puts short-term interest rates within the 3.5-3.75% range.

However, the Fed's economic forecast hinted that additional rate movements could have to wait until the labor market improves.

During a post-meeting press conference, Fed Chair Jerome Powell said that a 25-basis-point cut wasn't expected to make a big difference to the housing market. He mentioned that the homeowners who snapped up ultra-low rates during 2021 and 2022 are still discouraged from making a move. Powell added that the central bank doesn't "have the tools to address a structural housing shortage." 

In addition, since last week's rate cut was expected, it probably won't encourage any major rate reductions. While 30-year rates have hovered around the lowest levels of 2025 in recent weeks, they remain above 6%