Rare Split Emerges as Fed Moves to Cut Rates

The Federal Reserve lowered its benchmark interest rate by a quarter of a percentage point on October 29th, amid concerns about slower job growth and persistent inflation. The decision was not unanimous, with two officials disagreeing on the appropriate course of action. Governor Stephen Miran advocated for a larger cut to support the cooling labor market, while Kansas City Fed President Jeffrey Schmid opposed any cut due to ongoing inflation. The final vote was ten to two, bringing the federal funds rate to a range of three point seventy five to four percent. The Fed also announced it will halt its securities holdings from shrinking starting December first. The move highlights the challenges faced by Fed Chair Jerome Powell and his team, as they navigate a complex economic landscape with incomplete data due to the federal shutdown. The Daily News Now! - Every city. Every story. AI Powered. Hosted on Acast. See acast.com/privacy for more information.