Fed Cuts Rate to 4-1/4 to 4-1/2 Percent
The FOMC lowered the target range for the federal funds rate by 1/4 percentage point to 4-1/4 to 4-1/2 percent. 12
The Committee said it will carefully assess incoming data, the evolving outlook, and the balance of risks when considering the extent and timing of additional adjustments. It will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities. 1
The statement said economic activity has continued to expand at a solid pace. Labor market conditions have generally eased, and the unemployment rate has moved up but remains low. 1
Chair Powell said GDP rose at an annual rate of 2.8 percent in the third quarter, about the same pace as in the second quarter. He said housing sector activity has been weak. 1
The December projections show real GDP growth of 2.5 percent for 2024 and 2.1 percent for 2025. The unemployment rate is projected at 4.2 percent for 2024 and 4.3 percent for 2025. 1