Fed cuts interest rates again

  • The Federal Open Market Committee lowers its benchmark funds rate by 25 basis points to a range of 1.5% to 1.75%, as expected.
  • The Fed indicates it may pause rate cuts from here.
  • It did so by removing a key clause that had appeared in post-meeting statements since June saying it was committed to “act as appropriate to sustain the expansion.”
  • Regional presidents Esther George of Kansas City and Eric Rosengren of Boston again vote against the reduction, with both maintaining that the committee should have held the line at the previous rate.