The Federal Open Market Committee voted to cut target interest rates by 25 basis points due to an easing labor market and inflation moving toward its 2% goal.
Rate Cut: The cut lowers the federal funds rate to a range of 4.25% to 4.5%. The Cleveland Fed’s Beth Hammack was the sole dissenting vote.
Economic Projections: In its latest economic projections, the Federal Reserve estimated lower gross domestic product growth in 2024 and 2025, lower unemployment, and higher inflation than its September projection.