Overview
- The FOMC lowered the target range to 3.50%–3.75% with three dissents, as one member argued for a larger cut and two preferred to hold rates.
- Officials lacked key BLS releases after a 43‑day government shutdown and leaned more on private estimates and internal surveys.
- Fresh projections lifted expected 2026 growth to 2.3% and trimmed the 2026 inflation outlook to 2.4%, with 2025 inflation now seen at 2.9%.
- Markets had largely priced the move, with major U.S. equity indices near records and investors expecting further easing in 2026.
- The divided decision comes as President Trump pushes for faster cuts and readies a 2026 Fed chair nomination, while economists warn that over‑easing could lift long‑term rates and mortgage costs.