Federal Reserve cuts interest rates by quarter point

Federal Reserve Interest Rate Decision - The Federal Reserve has cut interest rates by a quarter point to a new range of 3.75% to 4% [1] - There were two dissents regarding the decision, with one governor advocating for a 50 basis point cut and another preferring no change at all [1][5] Quantitative Tightening and Balance Sheet Management - The Federal Reserve announced it will stop quantitative tightening and the roll-off of its balance sheet starting in December [1][5] - Future rolloffs of treasuries and mortgage-backed securities will be reinvested into T-bills, marking a shift in strategy [2] Economic Indicators and Outlook - The Fed noted that economic activity has expanded at a moderate pace, indicating a slight upgrade from previous assessments [2][3] - Job gains have slowed, but unemployment remains low as of August, with recent indicators aligning with these trends [3] - Inflation has increased since earlier this year and remains somewhat elevated, consistent with previous characterizations [4]