Fed Chair announces first interest rate cut of 2025

Economic Conditions - The unemployment rate remains low but has edged up, with job gains slowing and downside risks to employment rising [1] - Inflation has risen recently and remains somewhat elevated [1] - Recent indicators suggest that growth of economic activity has moderated [3] - GDP growth rose at a pace of around 1% to 1.5% in the first half of the year, down from 2.5% last year [3] - The moderation in growth largely reflects a slowdown in consumer spending [3] - Business investment in equipment and intangibles has picked up from last year's pace [4] - Activity in the housing sector remains weak [4] Monetary Policy - The Federal Open Market Committee decided to lower the policy interest rate by a quarter percentage point (0.25%) [2] - The Committee also decided to continue to reduce its securities holdings [2] Economic Projections - The median participant projects GDP to rise 1.6% this year and 1.8% next year [4]