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What Do September 2025 Expected Fed Rate Cuts Mean for SBA Term Loans?
The Fed held interest rates at 7.5% for nine months, but a 0.25% cut is expected due to a weakening economy.
The Fed has been walking a tightrope between cooling inflation and supporting growth. Key factors driving the September decision include:
Labor Market Weakness: Recent data shows slower job creation, rising unemployment claims, and a higher jobless rate. This signals that businesses are cutting back, raising concerns of a broader slowdown. Inflation Still Above Target: In August, inflation rose slightly to 3.1%, still above the Fed’s 2% target. Cutting too quickly could reignite inflationary pressures. Fed’s Balancing Act: Chair Powell emphasized in July that rate decisions depend on labor market health. Current trends point toward a cautious rate reduction of about 0.25%.
Read full breakdown here.
LinkedIn
The Fed has been walking a tightrope between cooling inflation and supporting growth. Key factors driving the September decision include:
Labor Market Weakness: Recent data shows slower job creation, rising unemployment claims, and a higher jobless rate. This signals that businesses are cutting back, raising concerns of a broader slowdown. Inflation Still Above Target: In August, inflation rose slightly to 3.1%, still above the Fed’s 2% target. Cutting too quickly could reignite inflationary pressures. Fed’s Balancing Act: Chair Powell emphasized in July that rate decisions depend on labor market health. Current trends point toward a cautious rate reduction of about 0.25%.
Read full breakdown here.
