The Federal Reserve lowered its benchmark interest rate by 25 basis points to a target range of 4.00%–4.25%, citing slower economic growth, rising unemployment risks, and persistent inflation pressures. The move marks the Fed’s latest step to balance its dual mandate of maximum employment and stable prices.
- Job gains have slowed and unemployment has edged up, though it remains relatively low.
- Inflation has moved higher and remains above the Fed’s 2% target.
- The Fed noted downside risks to employment have increased, prompting the rate cut.
- The Committee reaffirmed its plan to continue reducing holdings of Treasury securities, agency debt, and mortgage-backed securities.
- One dissent came from Stephen I. Miran, who favored a deeper 50 basis point cut.
- Fed Chair Jerome Powell and Vice Chair John C. Williams voted in favor of the 25 basis point reduction.
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Editor’s Note: This is a developing story. This article may be updated as more details become available.
