Fed Delivers Second Rate Cut to 3.75%–4.00%, Will End QT on Dec. 1

Policymakers cite rising employment risks given limited official data during the partial government shutdown.

Overview

The FOMC lowered the federal funds rate by 25 basis points to a 3.75%–4.00% range, marking a second consecutive cut.
The central bank said it will stop shrinking its balance sheet on December 1, pausing the asset runoff that began in 2022.
The statement flagged greater downside risks to employment even as growth continues at a modest pace.
With many government statistics unavailable, the Fed is leaning on private-sector indicators and regional Federal Reserve information.
Officials were split, with one dissent favoring a 0.5-point reduction and another preferring no change, and the committee kept the option of further adjustments open.