The Federal Open Market Committee (FOMC) voted to lower the federal funds target range by 1/4 percentage point to 4 to 4‑1/4 percent. The committee cited weakening employment numbers and sustained uncertainty concerning inflation and the economy as reasons for approving its first rate cut since December of last year.
Federal Reserve Gov. Stephen Miran cast the lone dissenting vote during the FOMC’s Sept. 16-17 meeting, signaling his preference for a 1/2 percentage point cut to the target range. Miran was confirmed by the Senate just two days prior to the vote.
The FOMC released an updated policy statement detailing its underlying reasoning and projected outcomes for real gross domestic product growth, the unemployment rate and inflation for each year from 2025 to 2028 and over the longer run, based on information available at the time of the meeting.
“The committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run,” the FOMC wrote. “Uncertainty about the economic outlook remains elevated. The committee is attentive to the risks to both sides of its dual mandate and judges that downside risks to employment have risen.”
Dodd Frank Update will update this article with more details in the coming days.