FOMC Meeting Update: Interest Rates Cut by Half-Point
FOMC Meeting: Latest Updates
The FOMC meeting has brought important news as the Fed cuts interest rates by half a point. Officials noted that job gains have slowed and the unemployment rate has increased. However, the economy continues to grow at a solid pace, with inflation moving closer to the central bank's 2 percent target.
Impact of the Decision
Officials mentioned a growing confidence that inflation is moving sustainably toward 2 percent, balancing their dual mandate of stable prices and maximum employment. Notably, the Fed's voting process often sees unanimous support, but Gov. Michelle Bowman voted against the decision, advocating for only a quarter-point cut.
Future Projections
Looking ahead, policymakers have projected a potential further half-point reduction by the end of 2024, which may occur during the remaining FOMC meetings in November and December. Additionally, officials anticipate further cuts in 2025 and 2026 as they adjust to a changing economic landscape.
Job Market Outlook
The Fed has revised their unemployment expectations from 4 percent to 4.4 percent by year-end, reflecting a slightly weaker job market. However, they remain optimistic about achieving their inflation target.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.