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2025-10-30 02:07:53
[Key Points of the Fed's Interest Rate Statement: 25 Basis Point Rate Cut and End of Quantitative Tightening – Two Opponents] The key points of Wednesday's Fed interest rate decision are as follows: The Federal Open Market Committee (FOMC) voted 10-2 to cut the benchmark interest rate by 25 basis points to 3.75%-4%, and announced that it will stop quantitative tightening on December 1st, at which time maturing agency debt will be reinvested in Treasury bills. Fed Governor Stephen Milan opposed the decision, advocating for a 50 basis point cut, while Kansas City Fed President Jeff Schmid advocated for maintaining the current rate. The statement continued the previous description of the labor market, stating that "job growth has slowed and the unemployment rate has risen, but remained low as of August," adding that "recent indicators are consistent with these changes" and that "downside risks to employment have increased in recent months." The Fed stated that current indicators suggest economic activity is expanding at a moderate pace, and reiterated that inflation has risen since the beginning of the year and remains relatively high.
