Summary
The Federal Reserve lowered interest rates for the third time this year, amidst disagreement among officials. The target range for the federal funds rate is now set between 3.5% and 3.75%. Some members wanted to keep rates steady, while others advocated for larger cuts.
Key Facts
- The Federal Reserve cut interest rates to a range of 3.5% to 3.75%.
- This is the third rate cut of the year.
- There was significant disagreement among Fed officials about the rate decision.
- Three Fed officials did not agree with the rate cut.
- The Fed plans to purchase short-term Treasury securities to ensure enough reserves in the financial system.
- Fed Chair Jerome Powell's term ends in May 2026, and President Trump is considering replacements.
- New projections show differing opinions on future rate changes among Fed officials.
- The Fed updated its 2026 economic forecasts, predicting higher GDP growth and lower inflation than previously expected.
