Federal Reserve

The Federal Reserve started a rate-cutting cycle on Sept. 18, 2025, lowering its benchmark interest rate by 50 basis points (bps) to a range of 4.75% to 5%. The cut was the first since March 2020 after the Fed raised interest rates to a 23-year high point to cool the economy and quell inflation. The Fed cut rates two more times in 2024, each by 25 basis points. It has not cut interest rates so far in 2025.

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Fed’s Hoenig: Allow Institutions to Fail 

Mar 09, 2009By

Troubled financial institutions at times ought to be allowed to fail and their operations sold off, said Thomas Hoenig, president and CEO of the Federal Reserve Bank of Kansas City, in a speech Friday in Omaha, Neb. “We understandably would prefer not to ‘nationalize’ these businesses, but in reacting as we are, we nevertheless are drifting into a situation where institutions are being nationalized piecemeal with no resolution of the crisis,” he said.

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