Summary
The Federal Reserve lowered interest rates by 0.25%, marking the second rate cut intended to help the weakening job market. Fed Chair Jerome Powell indicated that another rate cut in December is uncertain, leading to immediate market reactions.
Key Facts
- The Federal Reserve cut interest rates by 0.25% on Wednesday.
- The current federal funds rate is now between 3.75% and 4%.
- Federal Reserve Chair Jerome Powell expressed uncertainty about another rate cut in December.
- Powell mentioned that the Fed is divided on what action to take in December.
- Two Fed policy committee members had differing opinions; one wanted a larger cut, and another wanted no change.
- As the Fed announced the rate cut, stock markets fell, and 2-year Treasury yields increased.
- The ongoing government shutdown has delayed important economic data like job reports.
- The Fed will stop reducing its balance sheet on December 1, an effort started in 2022 as part of "quantitative tightening."
