Overview
- Policymakers lowered the federal funds rate by 25 basis points to 3.50%–3.75%, the lowest level in nearly three years.
- The statement said the Committee will carefully assess incoming data, a signal of a likely pause, and Chair Jerome Powell noted policy is in the high end of the neutral range.
- Three officials dissented, the most since 2019: Stephen Miran sought a half-point cut, while Austan Goolsbee and Jeffrey Schmid favored holding rates steady.
- The dot plot shows a median expectation of one more cut in 2026 and inflation easing toward about 2.4% by year-end, alongside upgraded growth projections.
- The move was made without recent official jobs and inflation reports due to a 43‑day shutdown, with next week’s releases poised to guide January policy as President Trump pushes for faster easing and prepares to name Powell’s successor.