Fed lowers rates by a quarter point

The Federal Reserve’s Open Market Committee (FOMC) voted to cut interest rates by 25 basis points, marking the first reduction in nine months. The target range now stands at 4% to 4.25%.

The FOMC’s statement reads: “In considering additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities.”

Eleven of the 12 committee members supported the move, with newly confirmed Fed governor Stephen Miran dissenting in favor of a larger half-point cut.