Fed Cut Delivers Modest Relief | September 2025 Financial Markets Report
- The Vara Group
- Sep 19
- 1 min read
Updated: Sep 26
The Federal Reserve delivered a widely anticipated rate cut at its September 2025 meeting, lowering the federal funds rate from 4.25% to 4.00%. While this marks the first cut since December 2024, divisions within the Fed cloud the longer-term policy outlook.
Key Takeaways:
🔹 Fed funds rate lowered to 4.00% → first cut since December 2024
🔹 10-Year Treasury in low-4% band → down 80 bps this year
🔹 Fed members split on future path → long-term debt costs remain uncertain
For investors, the recent rate movement may provide a modest window of opportunity. Lower short-term borrowing costs and easing Treasury yields could improve liquidity for well-priced assets. However, the Fed’s lack of consensus highlights uncertainty around the future trajectory of long-term rates, keeping capital market conditions fluid.
The September 2025 Financial Markets Report explores how this latest rate cut, Treasury yield shifts, and Fed divisions could shape opportunities and risks for commercial real estate investors in the months ahead.
