Fed cuts interest rates for third straight time amid uncertainty over labor market, inflation

Core Points - The Federal Reserve announced its third interest rate cut of the year, lowering the benchmark federal funds rate by 25 basis points to a range of 3.5% to 3.75% to support the labor market despite high inflation [1] - The decision follows previous rate cuts in September and October, marking the first cuts of the year [1] - Policymakers are responding to a slowdown in the labor market and rising inflation, influenced by changes in trade and immigration policy [2] Summary by Sections Interest Rate Decision - The Federal Open Market Committee (FOMC) voted to cut the interest rate by 25 basis points, with nine policymakers in favor and three dissenting [4] - Dissenters included Chicago Fed President Austan Goolsbee and Kansas City Fed President Jeffrey Schmid, who preferred to keep rates unchanged, while Fed Governor Stephen Miran advocated for a larger cut of 50 basis points [4] Economic Context - Economic data indicates a slowdown in job gains and an increase in the unemployment rate through September, alongside rising inflation [5] - The Fed faces challenges in achieving its dual mandate of stable prices and maximum employment amid these economic dynamics [2][5]