Fed Chair Powell announces the Fed has cut interest rates by .25%, down to 4.25%

Fed Chair Powell announces the Fed has cut interest rates by .25%, down to 4.25%. This was the third interest rate cut for the year.

The Federal Reserve just cut interest rates, but don’t get used to falling borrowing costs: they’re likely to stay where they are for at least the next couple of months.

As widely expected, the Fed’s policy committee lowered its influential federal funds rate by a quarter point Wednesday, bringing it to a range of 4.25% to 4.5%, the lowest since February 2023.” It was the third time the Fed cut the rate this year, bringing it down from the two-decade high it had held for more than a year to push inflation down. The rate, which influences interest rates on all kinds of loans, remains higher than typical pre-pandemic levels, and Fed officials indicated it’s likely to stay that way for a while.

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Fed Chair Powell announces the Fed has cut interest rates by .25%, down to 4.25%

Key Points

Fed Chair Powell announces the Fed has cut interest rates by

• This was the third interest rate cut for the year
• The Federal Reserve just cut interest rates, but don’t get used to falling borrowing costs: they’re likely to stay where they are for at least the next couple of months
• As widely expected, the Fed’s policy committee lowered its influential federal funds rate by a quarter point Wednesday, bringing it to a range of 4

Transcript Highlights

The following is transcribed from the video audio:

• My colleagues and I remain squarely focused on achieving our dual mandate goals of maximum employment and stable prices for the benefit of the American people
• The economy is strong overall and has made significant progress toward our goals over the past two years
• The labor market has cooled from its formerly overheated state and remains solid
• Inflation has moved much closer to our 2% longer-run goal
• We’re committed to maintaining our economy’s strength by supporting maximum employment and returning inflation to our 2% goal
• To that end today, the Federal Open Market Committee decided to take another step in reducing the degree of policy restraint by lowering our policy interest rate by a quarter percentage point
• We also decided to continue to reduce our securities holdings
• I’ll have more to say about monetary policy after briefly reviewing economic developments
• Recent indicators suggest that economic activity has continued to expand at a solid pace
• 8% in the third quarter about the same pace as in the second quarter

Full transcript: 632 words transcribed via Whisper AI.