⏰ FOMC
Federal Reserve cuts interest rates by 0.25%, Powell says there's 'no risk-free path'
^GSPC
+0.67%
The Federal Reserve cut interest rates by 25 basis points at the conclusion of its two-day meeting on Wednesday, marking the central bank's third cut of the year.
Fed officials were split on the decision to lower rates to a range of 3.50%-3.75%, with policymakers dissenting on both sides. Chicago Fed president Austan Goolsbee and Kansas City Fed president Jeff Schmid favored holding rates steady, while Fed governor Stephen Miran favored a 50 basis point rate cut.
US stocks rallied in the wake of the decision, with the S&P 500 (^GSPC) closing just off its record high and the small-cap Russell 2000 (^RUT) reaching an all-time high.
At the press conference, Fed Chair Jerome Powell underscored that the Fed remains in a "challenging" position, with both sides of its dual mandate in tension.
Along with its final policy decision of the year, the Fed also published its final Summary of Economic Projections (SEP) for 2025, which includes forecasts from Fed officials on economic growth, inflation, and interest rates for the coming years.
The SEP showed the Fed's median forecasts calling for one interest rate cut in 2026, in line with the projections made in September.
Here are the latest updates and analysis on the Fed's policy decision.
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