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Fed Cuts Rates 25 Basis Points as Split Vote Signals Slower Easing

Cautious projections alongside missing data point to a pause‑prone, meeting‑by‑meeting path.

Overview

  • The target range falls to 3.50%–3.75%, the third straight reduction and the lowest level in about three years.
  • The decision passed 9–3, with two officials favoring no change and Stephen Miran pushing for a larger half‑point cut.
  • The Fed’s dot plot points to just one additional cut in 2026, underscoring a more gradual trajectory for policy.
  • Updated forecasts envision 2026 GDP growth near 2.3%, inflation about 2.4%, and unemployment around 4.4%.
  • The White House has begun final interviews for the next Fed chair as President Trump publicly presses for bigger rate reductions.