Wed Sep 17 18:40:00 UTC 2025: **Fed Cuts Rates, Signals More to Come, But Powell Tamps Down Dovish Expectations**
**Washington, D.C.** – The Federal Reserve lowered its benchmark interest rate by a widely anticipated quarter percentage point on Wednesday, marking the first rate cut since December. The move, intended to provide some stimulus to a moderating economy, was met with a mixed reaction on Wall Street as Fed Chairman Jerome Powell cautioned against expecting a prolonged cycle of rate cuts.
The Dow Jones Industrial Average initially surged, reaching an all-time high, before settling to a gain of 259 points (0.6%). The S&P 500 closed little changed, down 0.3%, while the Nasdaq Composite declined 0.5%, dragged down by profit-taking in high-flying tech stocks like Nvidia, Oracle, and Broadcom. Smaller companies, represented by the Russell 2000, benefited from the news, jumping 0.4%.
The Federal Open Market Committee (FOMC) voted 11-1 to lower the benchmark overnight lending rate to a range of 4%-4.25%. The central bank also signaled the potential for two additional rate cuts before the end of the year.
In its post-meeting statement, the Fed acknowledged a slowdown in job growth and noted that inflation remains “somewhat elevated.” Powell characterized the rate cut as a “risk-management cut,” suggesting a cautious approach and a desire to guard against a significant economic downturn.
Deutsche Bank raised its 2026 forecast for gold prices Wednesday to an average of $4,000 an ounce. UBS advised investors to remain invested given that the path of interest rates is lower.
Analyst’s say the market had expected a rate cut and no surprises are anticipated in the coming months. Bernstein upgraded Zillow stock to outperform from market-perform. Paul Singer-founded Elliott Investment Management took a more than $2 billion stake in software company Workday, helping push the stock 9% higher on Wednesday.
First Piper 