Federal Funds Rate: What to Expect From Tomorrow’s Fed Decision
Picture Credit: nytimes.com The Federal Funds Rate is one of the most important levers in the global financial system. While it sounds like something only Wall Street bankers should care about, its impact stretches into every corner of the economy—from mortgage rates and credit card bills to the value of the U.S. dollar and even emerging markets like Pakistan. With the Federal Reserve’s next policy meeting scheduled for September 16–17, 2025 , all eyes are on what the Fed will decide. Will they cut rates, hold steady, or surprise markets with a bolder move? Let’s break it down. What Is the Federal Funds Rate? At its core, the Federal Funds Rate is the interest rate at which U.S. banks lend money to each other overnight. The Federal Open Market Committee (FOMC) sets a target range for this rate, which then influences nearly all other borrowing costs—business loans, mortgages, credit card rates, and even international capital flows. Think of it as the “base price of money” in the U.S....