Overview
- The move marks a second consecutive cut in 2025 and takes policy rates below 4% for the first time since late 2022.
- The decision passed 10–2, with Stephen Miran urging a larger half‑point cut and Kansas City Fed President Jeffrey Schmid favoring no change.
- Balance‑sheet runoff will stop on December 1, with bond purchases resuming after a reduction of roughly $2.3 trillion since 2022.
- The Fed left open a possible December reduction but signaled no assurance, pointing to a cooling labor market, still‑elevated inflation and a moderate expansion.
- A federal government shutdown is restricting the flow of economic data and could temporarily weigh on activity, with the CBO estimating up to a $14 billion hit.