Fed cuts rate by 25 basis points to end the year

The Federal Open Market Committee voted to cut the target range for the federal funds rate by 25 basis points to 3-1/2 to 3‑3/4 percent. Three members voted against the cut.

The news statement reads:

“Available indicators suggest that economic activity has been expanding at a moderate pace. Job gains have slowed this year, and the unemployment rate has edged up through September. More recent indicators are consistent with these developments. Inflation has moved up since earlier in the year and remains somewhat elevated.”

FOR RATE CUT: Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michael S. Barr; Michelle W. Bowman; Susan M. Collins; Lisa D. Cook; Philip N. Jefferson; Alberto G. Musalem; and Christopher J. Waller.

AGAINST RATE CUT: Stephen I. Miran, “who preferred to lower the target range for the federal funds rate by 1/2 percentage point at this meeting; and Austan D. Goolsbee and Jeffrey R. Schmid, who preferred no change to the target range for the federal funds rate at this meeting.”