Fed Trims Rates Quarter-Point, Signals Higher Bar to Further Cuts
The Federal Reserve cut the federal funds rate by an expected quarter-point to a range of 3.50%-3.75% on Wednesday.
Three FOMC members dissented from the rate cut. Governor Stephen Miran favored a larger half-point reduction—for the third consecutive meeting. Kansas City Fed President Jeffrey Schmid again voted to hold rates steady, joined this time by Chicago Fed President Austan Goolsbee.
Expectations for the Federal Reserve’s December decision have swung sharply since the October 29 FOMC meeting, when Chair Jerome Powell cautioned that a rate cut was far from certain. The prolonged government shutdown has deprived policymakers of key economic data, adding to the uncertainty and exposing divisions within the Committee, as reflected in today’s decision.