Fed Lowers Interest Rates And Signals More Cuts This Year

Core Points - The Federal Reserve has voted to lower interest rates by a quarter-point to a range of 4% to 4.25%, with expectations for additional cuts later this year [1][2] - The Federal Open Market Committee anticipates two more quarter-point cuts by the end of the year, potentially lowering the funds rate to between 3.5% and 3.75% [2] - Inflation remains above the Fed's target of 2%, with the latest figure at 2.9% in August, while unemployment has increased to 4.3% [4] Federal Reserve Actions - The FOMC voted 11-1 in favor of the interest rate cut, with Fed Governor Stephen Miran being the only dissenting vote [2] - The Fed's decision comes amid concerns over a weakening labor market and is part of a broader strategy to address economic conditions [2][4] Economic Indicators - Inflation has worsened, rising to 2.9% in August, while job growth has been below projections, contributing to an increase in unemployment to 4.3% [4] - The Fed's dual mandate focuses on achieving full employment and stabilizing prices, which is currently challenged by the economic data [4]