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Amid Growing Business Investment, Fed Makes First Cut of 2025

Sep 17, 2025

McLean, Va. (September 17, 2025) — The Federal Reserve cut the federal funds rate for the first time this year, landing at a target range of 4% to 4.25%. The committee also released their quarterly summary of economic projections following this meeting. Projections for GDP growth increased slightly to 1.6% in 2025, while expectations for unemployment and inflation remained steady at 4.5% and 3%, respectively.

“Fed Chair Powell remarked to the press that weaker growth in the first half of the year was largely due to slowing consumer demand while business investment was growing. This is consistent with the nearly 15% year-to-date growth in orders of metalworking machinery seen through July 2025,” said Christopher Chidzik, principal economist of AMT – The Association For Manufacturing Technology. “Moving closer to a neutral interest rate could spur increased demand for labor, but until labor supply begins to expand, additional investments in manufacturing technology will be necessary to meet any future increase in demand for manufactured goods.”

Subscribe to the AMT Now newsletter to receive the latest updates on how Fed interest rate decisions impact manufacturing technology markets, and gather the latest industry forecasts at AMT’s annual MTForecast conference on Oct. 15-17 in Schaumburg, Illinois.


Members of AMT – The Association For Manufacturing Technology build and sell metalworking machinery, commonly known as machine tools, as well as the workholding, tooling, inspection equipment, and automation integral to modern manufacturing.

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