September 17, 2025
Jerome H. Powell
September 17, 2025 FOMC Press Conference
- The chair said GDP rose at a pace of around 1½ percent in the first half of the year, down from 2.5 percent last year, with the moderation largely reflecting a slowdown in consumer spending.
- The chair said payroll job gains slowed to a pace of just 29,000 per month over the past three months, and that a good part of the slowing likely reflects a decline in labor force growth due to lower immigration and lower labor force participation.
- The chair said estimates based on the consumer price index indicate total PCE prices rose 2.7 percent over the 12 months ending in August and core PCE prices rose 2.9 percent, with inflation for goods picking up while disinflation continues for services.
- The chair said the median SEP projection for the federal funds rate is 3.6 percent at the end of this year, 3.4 percent at the end of 2026, and 3.1 percent at the end of 2027, a path ¼ percentage point lower than projected in June.
- The chair said there was not widespread support for a 50 basis point cut at the meeting, and that the policy has been doing the right thing so far this year, reacting now to the much lower level of job creation and other evidence of softening in the labor market.
From the opening statement
Press conference
CHAIR POWELL. Good afternoon. My colleagues and I remain squarely focused on achieving our dual-mandate goals of maximum employment and stable prices for the benefit of the American people. While the unemployment rate remains low, it has edged up, job gains have slowed, and downside risks to employment have risen. At the same time, inflation has risen recently and remains somewhat elevated.
In support of our goals, and in light of the shift in the balance of risks, today the Federal Open Market Committee decided to lower our policy interest rate by ¼ percentage point. We also decided to continue to reduce our securities holdings. I’ll have more to say about monetary policy after briefly reviewing economic developments.
Recent indicators suggest that growth of economic activity has moderated. GDP rose at a pace of around 1½ percent in the first half of the year, down from 2.5 percent last year. The moderation in growth largely reflects a slowdown in consumer spending. In contrast, business investment in equipment and intangibles has picked up from last year’s pace. Activity in the housing sector remains weak. In our Summary of Economic Projections, the median participant projects GDP to rise 1.6 percent this year and 1.8 percent next year, a touch stronger than projected in June.