Some policymakers have expressed caution about lowering rates further, while President Donald Trump and his recent appointee have pushed for steep cuts.
Key Facts
The Federal Open Market Committee voted 10-2 in favor of easing interest rates by a quarter-point to between 3.75% and 4%, down from the 4% to 4.25% range policymakers opted for during the FOMC’s meeting last month.
Kansas City Fed President Jeffrey Schmid and Fed Governor Stephen Miran were the lone dissenting votes: Miran again pushed for a half-point reduction after dissenting in September’s vote, while Schmid preferred the Fed not lower rates at all.
In its statement, the FOMC held its review of the labor market, which notes that “job gains have slowed and the unemployment rate has edged up but remained low through August.”
The Fed appeared to acknowledge the ongoing federal government shutdown, adding “available indicators” suggest the U.S. economy has expanded at a moderate pace and that inflation has “moved up since earlier in the year and remains somewhat elevated.” What Did Jerome Powell Say About Interest Rates?
Fed Chair Jerome Powell said in a statement that policymakers had “strongly differing views” about how to proceed in the FOMC’s last meeting in December.
