Fed's September 2025 rate cut to 4.00-4.25% was risk-management move, Powell says

Federal Reserve cut rates 25bps in September 2025, first easing since December 2024, citing labor market weakness despite 4.3% unemployment. Powell framed it as precautionary. Traders should position for potential easing cycle if data deteriorates: long duration bonds, short USD against risk currencies, and caution on rate-sensitive equities if cuts signal recession fear rather than soft landing.