Overview
- The Federal Reserve lowered the policy rate by 0.25 percentage point to a 3.50%–3.75% target range with a 9–3 vote.
- Two voters, Kansas City’s Jeffrey Schmid and Chicago’s Austan Goolsbee, opposed any cut, while Governor Stephen Miran backed a larger half-point move.
- Updated Fed projections show a median outlook for at least one additional rate cut in 2026.
- The decision came without fresh data after a prolonged shutdown halted statistical releases; the latest available readings were 4.4% unemployment and 2.8% inflation from September.
- Chair Jerome Powell described the debate as tight and gave little guidance on the path ahead, as the White House readies a decision on his successor with Kevin Hassett reported as the favorite and the Supreme Court set to review the attempted removal of Governor Lisa Cook in January.