Fed Cuts Rates Third Time, Signals Possible Pause
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60-Second Summary
Washington, The Federal Reserve cut its benchmark interest rate by 0.25 percentage point on Wednesday, marking a third reduction to a 3.50–3.75 percent range. Fed officials released projections showing one additional cut for next year while signaling they may pause further reductions as they assess incoming data. Chair Jerome Powell said the central bank is "well positioned to wait and see" amid elevated inflation and signs of labor-market weakening. Three policymakers dissented, the most in years, and one member voted for a larger cut. Based on 6 articles reviewed and supporting research.
About this summary
This 60-second summary was prepared by the JQJO editorial team after reviewing 6 original reports from WBRZ, https://www.wsaw.com, Kyodo News+, Free Malaysia Today, East Bay Times and Yonhap News Agency.
Timeline of Events
- Since September: The Fed began a sequence of rate reductions.
- Subsequent meeting: A second reduction further eased policy ahead of December.
- Dec. 10: The Fed lowered the target range by 0.25 percentage point to 3.50–3.75 percent.
- Fed released quarterly projections showing one additional cut expected next year.
- The meeting recorded three dissents, highlighting internal disagreement and possible future contention.
- Articles Published:
- 6
- Right Leaning:
- 0
- Left Leaning:
- 0
- Neutral:
- 6
- Distribution:
- Left 0%, Center 100%, Right 0%
Borrowers, including homeowners and consumers with loans, benefited from lower borrowing costs as the Fed cut rates, while financial markets that rely on economic growth may gain clearer short-term guidance.
Savers and fixed-income investors suffered lower yields, and businesses facing policy uncertainty experienced increased planning risk due to visible dissent within the Fed.
After reading and researching latest news, the Federal Reserve cut its benchmark rate 0.25 percentage point to 3.50–3.75 percent on Dec.10, marking a third straight cut; projections show one more cut next year, and three officials dissented, reflecting growing concern over labor-market weakness amid elevated inflation and noted policy uncertainty.
Coverage of Story:
From Left
No left-leaning sources found for this story.
From Center
Fed Cuts Rates Third Time, Signals Possible Pause
WBRZ https://www.wsaw.com Kyodo News+ Free Malaysia Today East Bay Times Yonhap News AgencyFrom Right
No right-leaning sources found for this story.
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