US Fed Lowers Rates 25bps, Signals No December Cut

The Federal Open Market Committee (FOMC) of the US Federal Reserve lowered its benchmark interest rate by 25 basis points, bringing the new target range to 3.75%-4%. This marks the second consecutive rate cut following a nine-month pause.

The decision was not unanimous. New Fed Governor Stephen I. Miran supported a larger 50-basis-point reduction, while Kansas City Fed President Jeffrey R. Schmid favored keeping rates unchanged.

In its statement, the FOMC cited recent indicators showing a moderation in economic activity, slower job growth, and a higher unemployment rate. Inflation, it noted, has risen since the beginning of the year and remains “somewhat elevated.”

At a press conference, Fed Chair Jerome Powell said labor market conditions “are cooling, and inflation remains somewhat elevated.” He added that current data do not support expecting another rate cut at the December meeting.

The Fed reiterated its dual mandate: maintaining price stability near a 2% target and supporting maximum employment. Analysts had largely anticipated a 25-basis-point cut, following signals from Powell and other committee members.

The FOMC said it will continue to monitor incoming data to guide future policy adjustments, considering factors such as labor market conditions, inflation pressures and expectations, and financial and international developments.

The minutes from this meeting will be released on Nov. 19. The FOMC’s final monetary policy meeting of the year is scheduled for Dec. 9–10, when it will also publish updated projections for economic growth, inflation, and the labor market.