The Federal Reserve has reduced the federal funds rate by 25 basis points to a range of 4.00%–4.25% as of September 18, 2025. This marks the first rate cut of the year, with Fed Chair Jerome Powell citing it as a risk management measure amid complex economic conditions, including easing inflation and a cooling labor market. In contrast, the Bank of Japan has kept its policy rate steady at 0.50% for the fifth consecutive time, attributing the decision to stable inflation and growth. The BoJ also plans to sell ETFs as part of efforts to normalize its policy framework. Market reactions were mixed, with the dollar strengthening and gold prices facing pressure.