"The Federal Reserve reduced its key interest rate for the third time in a row Wednesday but signaled that it may leave rates unchanged in the coming months, a move that could attract ire from President Donald Trump, who has demanded steep reductions to borrowing costs. In a statement released after a two-day meeting, the Fed's rate-setting committee signaled that it may keep its rate unchanged in the coming months. And in a set of quarterly economic projections, Fed officials signaled they expect to lower rates just once next year."
"Wednesday's cut reduced the rate to about 3.6%, the lowest it has been in nearly three years. Lower rates from the Fed can bring down borrowing costs for mortgages, auto loans, and credit cards over time, though market forces can also affect those rates. Three Fed officials dissented from the move, the most dissents in six years and a sign of deep divisions on a committee that traditionally works by consensus."
"The Federal Reserve will almost certainly reduce its key interest rate Wednesday, but the bigger question for financial markets and the economy is what signals Chair Jerome Powell may send regarding the central bank's next steps. It would be the third cut in a row and bring the Fed's key rate to about 3.6%, the lowest in nearly three years."
The Federal Reserve cut its key interest rate for the third consecutive meeting, lowering it to about 3.6%, the lowest level in nearly three years. Fed officials signaled that they may leave rates unchanged in the coming months and projected just one additional cut next year. Lower policy rates can gradually reduce borrowing costs for mortgages, auto loans, and credit cards, though market dynamics also influence consumer rates. Three Fed officials dissented — the most in six years — reflecting a split between policymakers favoring cuts to support hiring and those awaiting inflation to return to the 2% target.
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