Fed Delivers a 25 Basis Point Cut but Signals a Higher Bar for Any Additional Easing Next Year

The Federal Reserve cut interest rates on Wednesday, as was widely expected. Heading into the meeting, there was a roughly 90% probability of a cut to the federal funds rate priced into the markets. The federal funds rate is now at a target range of 3.5%-3.75%, which is a quarter of a percentage point below the previous range. This is the third rate cut of 2025, which followed three rate cuts in 2024 as inflation eased from multi-decade highs. The federal funds rate is set by the Federal Open Markets Committee, or FOMC, which is the policy-making arm of the Federal Reserve. There are 12 voting members of the FOMC, and they typically agree on policy measures, save for a dissenter or two at some meetings.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool