Fed Meeting Today: Federal Reserve Interest Rate Decision, Timing, and What to Expect.

Abdinur M Odowa
Sep 17
10 min read

Key Takeaways:- The Federal Reserve is holding a policy meeting (FOMC meeting) that concludes with an interest rate decision. Investors and economists worldwide are watching closely for the Fed’s announcement.-

When is the Fed meeting? The two-day Federal Reserve meeting wraps up today, and the Fed’s rate decision (the FOMC announcement) is scheduled for 2:00 PM Eastern Time (ET)[1].-

What time is the Fed meeting today? At 2:00 PM ET the Fed will release its policy statement and interest rate decision. Jerome Powell, the Fed Chair, will then hold a press conference at 2:30 PM ET to discuss the decision[2].- Interest rates today: The Fed’s benchmark interest rates (federal funds rate) currently stand at 4.25%–4.50%[3] – the highest level in over a decade after recent rate hikes. Many expect a Fed rate cut to be announced, which would be the first cut in 2025[4].-

Why it matters: Changes in Fed interest rates can affect borrowing costs (loans, mortgages), savings yields, and the broader economy. A Fed decision to raise, hold, or cut rates influences the stock and bond markets and everyday financial conditions.

The Marriner S. Eccles Federal Reserve Board Building in Washington, D.C., headquarters of the Federal Reserve. The Federal Open Market Committee (FOMC) meets regularly (typically eight times a year) in this building and via videoconference to set U.S. monetary policy[5], including decisions on interest rates. — The Marriner S. Eccles Federal Reserve Board Building in Washington, D.C., headquarters of the Federal Reserve. The Federal Open Market Committee (FOMC) meets regularly (typically eight times a year) in this building and via videoconference to set U.S. monetary policy[5]*, including decisions on interest rates.*

What Is the Federal Reserve Meeting (FOMC)?

The Federal Reserve’s meeting refers to the gathering of the Federal Open Market Committee (FOMC) – the Fed’s policymaking arm – to review economic conditions and set interest rates. In simple terms, this is when U.S. central bank officials decide whether to make changes to the nation’s key interest rate (the federal funds rate) or leave it unchanged. The FOMC consists of 12 voting members (Federal Reserve Governors and regional Fed Bank presidents) who meet about eight times per year on a preset schedule[5]. These are often called Fed or FOMC meetings, and they are spaced roughly 6 weeks apart throughout the year.

During each FOMC meeting, the committee examines a range of economic data – inflation, employment, economic growth, and financial markets – in light of the Fed’s dual mandate. (Congress has directed the Fed to promote maximum employment and stable prices (low inflation) in the economy[6].) Based on the outlook for these goals, the Fed will decide to raise rates, cut rates, or keep rates steady. At the end of the meeting, the FOMC issues a public statement announcing its interest rate decision and some reasoning. The Fed Chair (currently Jerome Powell) typically holds a press conference after each meeting to explain the decision in more detail and answer questions[7]. These Fed announcements and press conferences are closely followed by investors, economists, and the media, because they signal the central bank’s view on the economy and future policy direction.

When is the Fed Meeting and What Time is the Fed Announcement?

When is the Fed meeting? The current Fed meeting began yesterday and concludes today (Sept. 17, 2025) with the policy decision. The Fed usually holds two-day meetings for major decisions. In general, the schedule of Fed meetings is published in advance – for example, in 2025 the FOMC’s regular meetings include dates like September 16–17 and another in late October, among others[8]. Investors often ask “When is the Fed’s next meeting?” because these events can move markets. (As of now, after this September meeting, the next Fed meeting is slated for late October 2025.)

What time is the Fed meeting today? A common question is when exactly the Fed’s decision will be released. The Fed’s interest rate decision (Fed announcement) is set for 2:00 PM Eastern Time (ET) today[1], which is when the FOMC releases its statement to the public. At that moment, you’ll hear what the Fed decision is: whether interest rates are being cut, raised, or left unchanged. Shortly after, at around 2:30 PM ET, Fed Chair Jerome Powell will hold a press conference to discuss the decision and answer questions from the press[2]. This timing – a 2:00 PM announcement and a follow-up press briefing – is typical for Fed meeting days.

It’s worth noting that while the formal meeting happens behind closed doors, the results are broadcast promptly at the scheduled time. So if you’re following markets or news, you’ll see headlines at 2:00 PM ET with the Fed’s rate decision. For example, Fed announcement today will be eagerly watched for confirmation of whether a rate cut occurs. If you’re wondering “when is the Fed rate decision?” or “what time is the Fed meeting today?”, remember: 2:00 PM ET is the key moment for the announcement, and 2:30 PM ET for Powell’s remarks.

What to Expect from the Fed’s Interest Rate Decision.

Going into today’s Fed meeting, there is widespread anticipation that the Fed will cut interest rates for the first time in a while. Fed watchers and financial markets are expecting a rate cut of 0.25% (25 basis points) in the federal funds rate[4]. This would likely lower the Fed’s target range from the current 4.25%–4.50% down to about 4.0%–4.25%. In fact, traders in futures markets have placed the odds of a quarter-point rate cut at about 96%[4] – an almost certain expectation. It would also mark the first Fed rate cut since December of last year[4], as the Fed has not lowered rates at any meeting so far in 2025.

Why are analysts confident about a coming Fed rate cut? The economic data provide some clues. The Fed had aggressively raised interest rates in 2022–2023 to fight high inflation. By late 2024, it started easing off increases. In 2025, the Fed has kept rates unchanged for five consecutive meetings[9], pausing to assess the economy. Now, several factors are nudging the Fed toward cutting rates:

· Weaker job market: Recently, the U.S. labor market has been showing signs of cooling. Job growth has slowed and the unemployment rate has ticked up slightly[10]. A “weakening labor market” suggests that the economy isn’t overheated, and it gives the Fed room to ease policy to support employment if needed.

· Stubborn inflation (but easing): Inflation is still above the Fed’s 2% target[11], which is why the Fed hasn’t cut rates sooner. However, inflation has been gradually coming down from its peak. If inflation pressures continue to recede, the Fed can justify a gentle rate cut to help the economy without risking a big surge in prices.

· Global and political pressures: There are external pressures and uncertainties – from trade issues to global economic cooling – that put the U.S. economy at risk. (Even political figures have openly urged the Fed to lower rates to boost growth.) While the Fed insists it makes decisions based on data, it is aware of risks like tighter financial conditions or international headwinds. Cutting rates can be a sort of insurance against economic downturn, as long as inflation is under control.

Considering these factors, the Fed’s announcement today will likely highlight that the rate cut is aimed at sustaining the economic expansion in the face of these headwinds, while still keeping an eye on inflation. It’s possible not all Fed officials are in agreement – in the last meeting, for instance, two FOMC members dissented and wanted a rate cut[9] even while the majority voted to hold steady. This time, the majority may agree on a cut, but there could be debate on how large it should be. A smaller 0.25% cut is the base case, though a few voices had discussed a bigger 0.50% cut. However, the consensus is that a larger 0.50% rate cut is unlikely at this meeting[12][13] – the Fed tends to move in measured steps unless there’s an emergency.

Jerome Powell’s tone in the 2:30 PM press conference will also be crucial. Even if the Fed delivers the expected cut, Powell’s comments on what comes next will drive markets. If he suggests that more rate cuts are on the horizon (due to continued economic softness), markets could rally in anticipation of easier monetary policy. If he instead emphasizes that the Fed is still concerned about inflation and that this might be a “one and done” cut for a while, markets might react more cautiously. Currently, many investors anticipate at least one more Fed rate cut later in 2025 (for example, another quarter-point cut at the December meeting) and possibly further easing in 2026[3]. These expectations have already influenced asset prices – for instance, hopes of rate cuts have helped support stock prices recently[14]. Powell will aim to balance these expectations with the Fed’s actual outlook.

In summary, today’s Fed decision is expected to be a rate cut of 0.25%, bringing interest rates slightly down from their current levels. This Fed meeting is especially notable because it would mark a turning point from a long pause to an easing cycle. The exact wording of the Fed’s statement and Powell’s remarks will indicate how confident the Fed is that inflation is contained and how much they might cut rates going forward. All of this will be parsed carefully by analysts and market participants after 2:00 PM ET.

Why Do Fed Interest Rates Matter for Investors?

Changes in Federal Reserve interest rates have far-reaching effects on the economy and financial markets – which is why investors big and small pay close attention to the Fed’s moves. Here’s why the Fed’s rate decision is so important, especially for beginner investors and anyone interested in personal finance:

Borrowing Costs for Consumers and Businesses: The Federal Reserve’s rate (the federal funds rate) influences many other interest rates in the economy. When the Fed raises rates, it becomes more expensive to borrow money; when the Fed cuts rates, borrowing tends to become cheaper. For example, a Fed rate cut often leads to slightly lower interest rates on mortgages, car loans, and credit cards (though the change isn’t always immediate or one-to-one). Cheaper borrowing can encourage people and businesses to take loans for buying homes, cars, or expanding businesses, which supports spending and economic growth[15]. On the flip side, when Fed rates are high, loans are costlier, which can slow down big purchases and investments. (Likewise, banks may lower the interest they pay on savings accounts when the Fed cuts rates, and raise them when the Fed hikes rates.)
Stock Market Reaction: Fed interest rate changes can have a big impact on the stock market. Generally, lower interest rates are seen as positive for stocks. Why? First, when rates are low, businesses can borrow money at lower cost, which can boost corporate investment and profits over time. Second, low rates make safer investments like bonds less attractive, often pushing investors towards stocks (seeking higher returns). Conversely, higher rates can put pressure on stock prices – companies face higher borrowing costs and investors can get decent returns from bonds or savings, making stocks relatively less appealing[16]. That’s why you often see stocks rise on news of a rate cut (or even on anticipation of it), and stocks may fall if the Fed surprises with a rate hike or signals a tighter policy stance. Of course, many other factors also affect the stock market, but Fed policy is a key ingredient.
Bond Market and Interest Yields: The bond market is directly tied to interest rate movements. Bond prices and interest rates move in opposite directions. When the Fed cuts rates (and market interest rates decline generally), existing bonds that pay higher interest become more valuable – so their prices go up. Investors who hold bonds may see their bond values rise in a falling rate environment. On the other hand, when the Fed raises rates, new bonds will start offering higher interest yields, which makes existing lower-yield bonds less attractive – so bond prices fall. If you invest in bonds or bond funds, Fed decisions will influence the value of those investments. Additionally, Fed rate changes can influence yields on things like Treasury bonds, which serve as benchmarks for many kinds of loans.
Overall Economy – Growth and Inflation: The Fed uses rate hikes or cuts as a tool to manage the economy’s pace. Cutting interest rates is generally a move to stimulate or support the economy: lower rates encourage borrowing and spending, which can boost economic activity (useful when growth is slow). Raising interest rates does the opposite: it cools off an overheating economy by making credit more expensive, which can help tamp down high inflation. For investors (and everyone), this matters because a strong economy often helps corporate earnings and job prospects, while an overheating economy with high inflation can erode purchasing power and lead to instability. The Fed is always trying to strike a balance – enough growth, but not runaway inflation. So, if you’re an investor, Fed rate changes might signal where the economy is headed. For example, a series of rate cuts might suggest the Fed is trying to fend off a recession (making it a time to be cautious or to look for opportunities if markets overreact), whereas rate hikes might signal confidence in the economy’s strength but also warn of tighter financial conditions ahead.

In short, the Fed’s interest rate decisions affect everything from the interest you pay on a car loan to the health of the job market and the returns on your investment portfolio. Beginner investors should not be scared by Fed moves, but it’s wise to understand them. If the Fed announcement today indeed delivers a rate cut, you might eventually see a small drop in loan rates and a reaction in your stock investments. However, these effects can take time to filter through the economy.

Bottom Line: The Federal Reserve’s meeting and interest rate decision today is a pivotal moment for the financial world. For beginners and seasoned investors alike, it’s important to grasp the basics: who the Fed is, what a rate decision means, and how it ripples out to interest rates today, the markets, and the economy. By tuning into the Fed’s actions (and reasoning), you can make more informed decisions about your own finances – whether it’s the rate on your future mortgage or the state of the stock market. While no one can predict the Fed’s every move, understanding the why behind their decisions is a key step in becoming a savvy investor. Stay informed, think long-term, and use insights from events like the Fed meeting today to guide (not dictate) your investment strategy. After all, the Fed will continue to meet and adjust policy in the future, and each decision is one part of the bigger economic picture[7]. Keep an eye on that bigger picture, and you’ll be better prepared to navigate the world of investing.

Sources: The information above is based on analysis from reputable financial news and data sources, including the Federal Reserve’s official schedule and statements[17], recent financial news coverage of Fed expectations[4][18], and expert commentary on how interest rates impact markets[15][16]. These sources provide insight into the Fed’s current meeting, the rationale behind expected rate cuts, and the broader consequences of Fed policy moves.