The Federal Open Market Committee announced today that it will lower the target range for the federal funds rate by 25 basis points to 4%-4.25%, marking the first time it has lowered the rate since December 2024. Newly appointed Governor Stephen Miran was the lone dissenter, preferring to cut the rate by 50 basis points.
In a statement, the FOMC said that recent indicators suggest that growth in economic activity moderated in the first half of the year.
“Job gains have slowed, and the unemployment rate has edged up but remains low,” it said. “Inflation has moved up and remains somewhat elevated.”
The meeting was Miran’s first as Fed governor. He was sworn in yesterday after being confirmed by the Senate on Monday to complete the term of former Governor Adriana Kugler, who resigned last month.
