The Federal Open Market Committee announced today that it would lower the target range for the federal funds rate by 25 basis points to 4.25%-4.5%. Eleven FOMC members voted for the cut, with Cleveland Fed President Beth Hammack voting against it, saying she preferred to maintain the target range at its current level.
The vote marked the third time this year that the FOMC has opted to lower rates. It voted in November to lower the target range by 25 basis points and voted in September to lower it by 50 basis points.
“Since earlier in the year, labor market conditions have generally eased, and the unemployment rate has moved up but remains low,” the FOMC said in a statement on today’s vote. “Inflation has made progress toward the committee’s 2% [inflation] objective but remains somewhat elevated.”
