"The cut decreased the Fed's 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. Chair Jerome Powell suggested at a news conference that after six rate cuts in the past two years, the central bank can step back and see how hiring and inflation develop."
"The chair also said that the Fed's key rate was close to a level that neither restricts nor stimulates the economy, a significant shift from earlier this year, when he described the rate as high enough to slow the economy and quell inflation. With rates closer to a more neutral level, the bar for further rate cuts is likely higher that it was this fall."
"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. Two officials voted to keep the Fed's rate unchanged: Jeffrey Schmid, president of the Kansas City Fed, and Austan Goolsbee, president of the Chicago Fed. Stephen Miran, whom Trump appointed in September, voted for a half point cut."
The Federal Reserve reduced its key interest rate by a quarter-point for the third consecutive time, bringing the rate to about 3.6%, its lowest level in nearly three years. Lower policy rates can gradually reduce borrowing costs for mortgages, auto loans, and credit cards, although market forces also influence consumer rates. Chair Jerome Powell indicated that after six cuts in two years the central bank can step back to observe hiring and inflation trends, and quarterly projections show officials expect only one rate cut next year. Three officials dissented, reflecting division ahead of a potentially contentious December meeting.
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