The United States Federal Reserve’s Federal Open Market Committee (FOMC) on Wednesday announced that it has decided to lower the federal funds rate by 25 basis points, bringing the target range down to 4%–4.25%.
The move was widely anticipated by markets, with investors closely watching for signals on how much further rates may be reduced this year. The decision comes amid signs of a weakening labor market and heightened calls for monetary easing.
Further details, including the Fed’s updated economic projections and the closely watched “dot plot” forecasting members’ views on the path of rates, are expected shortly.
Fed Chair Jerome Powell will hold a press conference at 2:30 p.m. ET, where he is likely to address the rationale behind the cut, the level of consensus among policymakers, and the outlook for future monetary policy moves.
Markets and investors will also be looking for clues on how divided the Fed remains, with some members pushing for deeper cuts while others argue for holding rates steady.
More updates to follow as details emerge from Powell’s press conference.
