FOMC cuts rates by half a point

The Federal Open Market Committee voted to lower the target range for the federal funds rate by 50 basis points, 4.75 to 5%. This marks the first rate cut since the pandemic in 2020.

The Committee stated that inflation has made great progress toward the initial 2% goal. “The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. The Committee has gained greater confidence that inflation is moving sustainably toward 2 percent, and judges that the risks to achieving its employment and inflation goals are roughly in balance. The economic outlook is uncertain, and the Committee is attentive to the risks to both sides of its dual mandate.”

See the FOMC’s full statement here.