The Feds are meeting today!

Key Decisions & Takeaways

1. Interest Rate Cut
   The Fed cut its target range for the federal funds rate by ¼ percentage point, bringing it down to 4.00%–4.25%. Federal Reserve+2Reuters+2
   This is the first rate reduction since December. Business Insider+2Financial Times+2

2. Why the Cut & Economic Picture

   • Job gains are slowing. Federal Reserve+2Investopedia+2

   • Unemployment has edged up (though it remains relatively low). Federal Reserve+1

   • Inflation remains elevated, above the Fed’s 2% target. Federal Reserve+2Reuters+2

   • Growth in economic activity has moderated. Federal Reserve+1

3. Future Guidance & Projections

   • The Fed signaled that there may be two additional rate cuts this year. Reuters+2Reuters+2

   • They will be closely watching incoming data (jobs, inflation, risks) to decide any further moves. Federal Reserve+1

   • Updated economic projections (the “dot plot”) reflect more variation among officials about how many cuts may happen. Some expect more cuts; others are more cautious. Reuters+2Federal Reserve+2

4. Dissent
   There was one dissenting vote: Governor Stephen I. Miran voted for a larger cut (½ point) instead of the ¼ point chosen by the majority. Federal Reserve+1

5. Commitment to Mandates
   The Fed reiterated its dual mandate: pursuing maximum employment and getting inflation back to 2%. Federal Reserve+2Financial Times+2
   They also said they remain ready to adjust policy if needed.