OAN Staff Katherine Mosack
The Federal Reserve’s Federal Open Market Committee (FOMC) announced on Wednesday that it would lower the target range for the federal funds rate by 25 basis points, a quarter-point cut, to 3.50%–3.75%.
The decision, voted on by a 9–3 margin, represents the third consecutive rate cut this year, following reductions in September and October, for a total of 75 basis points lowered since the cycle began.
The move aims to support a cooling labor market, lower borrowing costs for consumers, and address any inflation, according to the official FOMC statement and Chair Jerome Powell’s press conference.
Fed Chair Jerome Powell announces a quarter-point rate cut, saying the labor market is “gradually cooling” and inflation remains “somewhat elevated,” while the Fed also moves to purchase short-term Treasuries to support reserve levels.
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