Federal Reserve faces pressure to lower rates amid labor market concerns and rising inflation

The Federal Reserve is anticipated to decrease interest rates to between 4.00% and 4.25% on September 17, 2025, in response to signs of job market slowdown and substantial job revisions.

Despite the push for rate cuts, inflation is rising again, complicating the Fed’s response to economic conditions. The risk of stagflation, where economic growth slows while inflation rises, poses significant challenges for monetary policy.