Fed Cuts Rates Again, Signals Pause Next Year
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WASHINGTON The Federal Reserve on Wednesday cut its benchmark interest rate by 25 basis points, marking the third consecutive reduction, and projected a slower path for future cuts. The FOMC lowered the federal funds rate to a 3.50–3.75 percent range after a two‑day meeting, while three officials dissented. Policymakers cited a weakening labor market and persistently elevated inflation as complicating factors. Quarterly projections showed officials foresee one additional cut next year, with a year‑end median near 3.4 percent. Markets and borrowers will monitor Fed communications closely. Based on 11 articles reviewed and supporting research.
Prepared by Christopher Adams and reviewed by editorial team.
Timeline of Events
- September: Fed initiated first of three consecutive quarter-point rate reductions.
- October: Officials debated further cuts; uncertainty increased after an October meeting.
- Dec. 9-10: Two-day FOMC meeting convened to review policy and data.
- Dec. 10: Fed cut rate 25bp to 3.50–3.75%; three officials dissented.
- Fed published projections showing a median year-end funds rate near 3.4% next year, signaling one more cut.
- Articles Published:
- 11
- Right Leaning:
- 3
- Left Leaning:
- 1
- Neutral:
- 7
- Distribution:
- Left 9%, Center 64%, Right 27%
Lower short-term interest rates modestly benefited borrowers — including homeowners and businesses — by reducing borrowing costs while the Fed signaled a more cautious path for future cuts.
Savers and fixed-income investors experienced lower yields on deposits and short-term securities as the Fed cut rates, while workers faced continued signs of labor market softness.
Coverage of Story:
From Left
Federal Reserve cuts key rate but signals higher bar for future reductions
The Dallas Morning NewsFrom Center
Fed Cuts Rates Again, Signals Pause Next Year
WSBT KVII News 4 Jax Yonhap News Agency Nikkei Asia Yonhap News Agency Spectrum News Bay News 9From Right
Federal Reserve Cuts Key Interest Rate but Signals Higher Bar for Future Reductions - VINnews
vinnews.com KOKH FOX 4 News Dallas-Fort Worth
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