A Not-So-Foregone Conclusion: The Fed Cuts, but December in Limbo

The Federal Reserve lowered its benchmark interest rate by a quarter of a percentage point on Wednesday afternoon, bringing the target range to 3.75 to 4.00 percent. The move was widely expected, with fed funds futures pricing in roughly 98% odds of a 25 basis point cut ahead of today’s announcement. 

The vote was not unanimous. Governor Stephen Miran dissented in favor of a larger 50 basis point cut, while Kansas City Fed President Jeffrey Schmid preferred to hold rates steady.

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