Federal Reserve set for third 25bps rate cut of 2025, lowering fed funds to 3.5%–3.75%

The Federal Reserve is expected to deliver a 25bps cut today, its third of 2025, setting the federal funds target range at 3.5%–3.75%. Policymakers remain divided, with some warning further easing could reignite inflation while others cite mounting labor‑market risks. Markets have largely priced in the move, and attention is on Jerome Powell’s remarks and the FOMC statement for signals on the likelihood of additional cuts.