What changes are there in the full comparison of the Federal Reserve's September meeting statement?

On Wednesday, September 17 local time, the Federal Reserve lowered interest rates by 25 basis points as expected, bringing the target range for the federal funds rate down to 4.00% to 4.25%. The Fed's description of the economic outlook has changed somewhat since the July meeting. In this statement:

The Fed removed the phrase "although fluctuations in net exports continue to affect the data."

The Fed's description of the labor market is more pessimistic than in the last meeting. The FOMC statement acknowledges a slowdown in job growth, mentions a slight increase in the unemployment rate but still maintains a low level, removes the phrase "labor market conditions remain strong," and assesses that the downside risks to employment have increased.

The Fed believes that inflation levels have risen and remain slightly elevated. The previous meeting's statement did not mention this trend of rising inflation.

Based on the situation in the labor market, the Fed stated that considering the changes in risk balance, it decided to lower rates by 25 basis points at this meeting.

At this meeting, the newly appointed governor by President Trump, Stephen I. Miran, was the only one to vote against, believing that rates should be cut by 50 basis points instead of 25. Miran replaced Kugler, who resigned from the Fed board after the July meeting.

The two Fed governors previously appointed by Trump, Bowman and Waller, did not vote in favor of a 50 basis point cut as some had expected before the meeting; both supported a 25 basis point cut. In the previous July meeting, both had voted against, believing that a 25 basis point cut was appropriate.

The market is also closely watching the actions of Fed governor Cook. Trump attempted to remove Cook last month with controversial real estate transaction allegations. However, on Monday, the federal appeals court upheld the injunction, allowing Cook to attend this FOMC meeting. Cook voted in favor of the 25 basis point cut, although some had expected her to take a more hawkish stance.

Full Statement Translation

The full statement translation is as follows. The black font indicates parts that are the same as the July 2025 FOMC meeting statement, the red font indicates new parts from September 2025, and the blue font in parentheses indicates wording deleted from the July statement (please indicate the source when reprinting):

(Although fluctuations in net exports continue to affect the data,) recent indicators suggest that economic activity growth has slowed in the first half of the year. Job growth has slowed, the unemployment rate has slightly increased but remains low (the labor market conditions remain strong). Inflation levels have risen and remain slightly elevated.

The committee seeks to achieve maximum employment and a 2% inflation rate over the long term. Uncertainty regarding the economic outlook remains high. The committee closely monitors risk factors that may affect its dual mandate and assesses that downside risks to employment have increased.

To support its goals and considering changes in the risk balance, the committee decided to lower the target range for the federal funds rate (maintaining at 4.25% to 4.50%) by 0.25 percentage points to 4% to 4.25%. In considering further adjustments to the target range for the federal funds rate (the extent and timing), the committee will carefully assess future data, the evolving outlook, and the risk balance. The committee will continue to reduce its holdings of U.S. Treasury securities, agency debt, and agency mortgage-backed securities The committee is firmly committed to supporting maximum employment and returning inflation to its target of 2%.

When assessing the appropriate monetary policy stance, the committee will continue to monitor the impact of the latest information on the economic outlook. If risks emerge that could hinder the achievement of its goals, the committee will be prepared to adjust the monetary policy stance as deemed appropriate. The committee's assessment will reference a wide range of information, including labor market conditions, inflation pressures and expectations, as well as data on changes in financial and international conditions.

Voting in favor of this monetary policy were: FOMC Chair Jerome H. Powell, Vice Chair John C. Williams, Michael S. Barr, Michelle W. Bowman, Susan M. Collins, Lisa D. Cook, Austan D. Goolsbee, Philip N. Jefferson, Alberto G. Musalem, Jeffrey R. Schmid, and Christopher J. Waller. Those voting against this measure included Stephen I. Miran, who, along with Michelle W. Bowman and Christopher J. Waller, preferred to lower the federal funds rate target range by 0.5 (0.25) percentage points at this meeting. Adriana D. Kugler was absent and did not vote