Fed Cuts Interest Rates in Third Straight Meeting

The Federal Reserve cut interest rates for its third straight meeting, this time by 25 basis points to 4.25%-4.50%. It also issued projections calling for two quarter-point interest rate cuts in 2025, amid rising inflation.

Members of the committee say they see inflation reducing to its 2% goal, and say risks to achieving its employment and inflation goals are balanced. The vote in favor of the rate cut was 11 to 1, with Michelle W. Bowman being the lone dissenter.

In considering additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data and the balance of risks.

The committee’s assessments consider a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations and financial and international developments.