“The 25 basis point cut is consistent with market expectations.”

Robert Hulsey
President and CEO
American National Bank of Texas
.…on today’s Federal Reserve decision to cut its benchmark interest rate by a quarter percentage point.

The Federal Reserve cut its benchmark interest rate on Wednesday, Sept. 17—the first cut since December 2024—lowering the target range by a quarter point to 4.00%–4.25%.

Robert Hulsey, president and CEO of American National Bank of Texas, sees the cut as a measured response to current economic conditions. Hulsey, who is currently serving his second three-year term on the Federal Reserve Bank of Dallas’ Board of Directors, shared his take in an email to Dallas Innovates.

“With signs of weakness in the labor market and steady consumer prices, this move will help fuel growth and ease borrowing costs for families and businesses,” he said.

The Fed’s post-meeting statement highlighted the slowdown in job gains and a rising, but still low, unemployment rate. It noted that inflation “has moved up and remains somewhat elevated,” and emphasized growing risks to employment.

Hulsey added one clarification on how the cut might affect borrowers: “Mortgage rates more closely reflect 10-year interest rates, which are down slightly,” he noted.

While inflation remains somewhat elevated, the Fed cited a shift in the balance of risks, leaning more toward employment than prices, as the reason for easing. The Fed gave no indication of future rate moves but emphasized it would “carefully assess incoming data” before making additional adjustments. 

The Fed’s rate-cut decision was not unanimous. Federal Reserve Board member Stephen I. Miran voted against the action, favoring a larger half-point reduction.

For more of who said what about all things North Texas, check out Every Last Word.

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