BREAKING: Federal Reserve cuts interest rates by 25 bps

Group 1 - The Federal Reserve cut the Federal Funds rate by 25 basis points, bringing it to a range of 3.75% to 4% [1][5] - There were two dissents regarding the rate cut: Steven Myron advocated for a 50 basis point cut, while Jeff Schmid preferred no change at all, indicating divisions among Federal Reserve members [1][5] - The Fed's statement noted that economic activity has expanded at a moderate pace, but job gains have slowed, with the unemployment rate remaining low through August [2] Group 2 - The Fed acknowledged that inflation has increased since earlier this year and remains somewhat elevated, with heightened uncertainty around the economy [3] - The Federal Reserve decided to conclude the roll-off of its balance sheet starting December 1st, with plans to roll off $5 billion in treasuries and $35 billion in mortgage-backed securities in October and November [4]