The U.S. Federal Reserve officials were willing to cut the target range for the federal funds rate, according to the minutes of a Federal Open Market Committee (FOMC)'s September meeting, released on Wednesday.
According to the minutes, officials said labor market conditions had softened, noting the pace of employment increases had slowed.
In support of the Committee's goals and in light of the shift in the balance of risks, almost all members agreed to lower the target range for the federal funds rate by 1/4 percentage point to 4 to 4-1/4 percent.
Compared with the staff forecast prepared for the July meeting, the projection of real GDP growth was revised up somewhat, on balance, for this year through 2028, primarily reflecting stronger-than-expected data for both consumer spending and business investment as well as financial conditions that were projected to be a little more supportive of output growth, the minutes said.
Additionally, tariff increases were still expected to raise inflation this year and to provide some further upward pressure on inflation in 2026. Inflation was projected to decline in 2026, to reach the Fed's 2 percent target in 2027, and to remain there in 2028.
Fed officials show willingness to cut rate: minutes
Fed officials show willingness to cut rate: minutes
Fed officials show willingness to cut rate: minutes
The European Commission's autumn 2025 economic forecast shows that driven by a surge in exports in anticipation of U.S. tariff increases, the European Union's (EU) economy maintained growth in the third quarter of this year, and it is expected to continue expanding at a moderate pace over the forecast horizon.
In the report released on Monday, the Commission said the gross domestic product (GDP) of the EU is expected to grow 1.4 percent in 2025, with the eurozone expanding 1.3 percent. Growth in 2026 is forecast at 1.4 percent for the EU and 1.2 percent for the eurozone, both slightly lower than projections made in May.
Eurozone headline inflation is projected to ease to 2.1 percent this year from 2.4 percent in 2024. Inflation across the EU is seen declining from 2.6 percent in 2024 to 2.2 percent in 2027, remaining slightly above the eurozone rate.
Due to the increase in defence spending, the EU's fiscal deficit is expected to rise to 3.4 percent of GDP in 2027 from 3.1 percent in 2024. The EU debt-to-GDP ratio is projected to rise from 84.5 percent in 2024 to 85 percent in 2027, with the eurozone ratio set to rise from around 88 percent to 90.4 percent.
The forecast noted that globally, trade barriers have reached historic highs, and the EU now faces higher average tariffs on exports to the U.S. compared with the spring forecast. Persistent trade policy uncertainty continues to weigh on economic activity, with tariffs and non-tariff restrictions potentially constraining EU growth more than expected. Any escalation in geopolitical tensions could intensify supply shocks, it noted.
EU expects economy to expand moderately
