Federal Reserve Cuts Rates 25 Basis Points as Expected
The Federal Reserve has cut the federal funds rate by 25 basis points to a range of 3.50%–3.75%, marking the third consecutive 25 basis point cut and the lowest level since 2022. The decision came amid elevated uncertainty about the economic outlook, with the Fed noting rising downside risks to employment.
Notably, the vote saw dissent from three policymakers: two voted to hold the rates steady, while one advocated for a larger 50 basis point cut. This rate adjustment occurs as several key data releases have been delayed or suspended due to the ongoing U.S. government shutdown.
Market reactions included bitcoin trading around $92,400, modestly higher U.S. stocks, and the 10-year Treasury yield holding near 4.15%. Federal Reserve Chair Jerome Powell is scheduled to hold a press conference at 2:30 pm ET to discuss the policy path and economic outlook further.
