Summary
The Federal Reserve lowered interest rates by a quarter point, making it the third rate cut since September. This decision is aimed at addressing economic concerns but may not lead to lower mortgage rates as some people expect. President Trump expressed dissatisfaction with the rate cut, wanting deeper reductions.
Key Facts
- The Federal Reserve cut interest rates by 0.25%, bringing the rate to between 3.5% and 3.75%.
- This is the third rate cut since September.
- The decision was not unanimous; the Federal Reserve Board voted 9 to 3 in favor of the cut.
- Mortgage rates may not decrease as expected and could potentially rise.
- President Trump criticized the Fed, saying the cut should have been larger.
- The Fed is concerned about a weakening job market and high inflation.
- Inflation concerns linked to tariffs are expected to diminish by early 2026.
