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2025-10-30 02:09:56
[Key Points of the Fed's Interest Rate Statement: 25 Basis Point Rate Cut and End to Quantitative Tightening – Two Opponents] The key points of the Federal Reserve's interest rate decision on Wednesday 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%. The Fed announced that it will stop shrinking its balance sheet on December 1, 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 rate cut. Kansas City Fed President Jeff Schmid advocated keeping the rate unchanged. 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." The statement added 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.
