The Federal Reserve cut interest rates by a quarter point, or 25 basis points, on Wednesday. The decision was passed by a split 9–3 vote of the Federal Open Market Committee.
Fed Governor Stephen Miran voted against the decision, favoring a half-point rate cut, while Kansas City Fed President Jeff Schmid and Chicago Fed President Austan Goolsbee dissented in favor of holding rates steady.
This marks the third consecutive meeting at which the Fed has cut interest rates, bringing the target range to 3.5–3.75 percent.
The median projection of Federal Reserve officials now places inflation at 2.4 percent by the end of 2026, an improvement from the 2.6 percent forecast in September. Expected GDP growth has been raised from 1.8 percent to 2.3 percent.
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In the press conference following the announcement, Federal Reserve Chairman Jerome Powell said that due to the impact from tariffs, inflation has remained “somewhat elevated”.
Despite the dissent on the decision to cut interest rates, Powell also said, “a very large number of participants agree that risks are to the upside for unemployment and to the upside for inflation.”
