Federal reserve cuts rates

Source: Dukascopy Bank SA
Federal Reserve announced several monetary policy actions. The interest rate paid on reserve balances was lowered to 4.15%, effective September 18. The Federal Open Market Committee (FOMC) set the federal funds rate target range at 4.00% to 4.25%. To support this stance, the Fed will conduct overnight repurchase agreement (repo) operations with a minimum bid rate of 4.25% and a total operation limit of $500 billion. Overnight reverse repurchase agreements (reverse repos) will be offered at a 4.00% rate, with a daily counterparty limit of $160 billion.



Regarding its securities portfolio, the Fed will roll over at auction the amount of maturing Treasury securities that exceeds a cap of $5 billion per month, redeeming Treasury coupons up to the cap and using Treasury bills if coupon payments fall short. For agency debt and mortgage-backed securities (MBS), the Fed will reinvest principal payments that exceed a $35 billion monthly cap into Treasury securities, aiming to roughly match the maturity composition of outstanding Treasuries. Minor deviations from these amounts may occur for operational reasons.
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Wed, 17 Sep 2025 11:20:04 GMT

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ECB leaves the intrest rates the same

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