The Fed cuts interest rates by a quarter of a percentage point in December

The Federal Reserve on Wednesday announced its third straight rate cut, lowering its benchmark interest rate by 25 basis points amid economic data showing inflation remains above the central bank’s target rate.

With a 25 basis point cut, the benchmark federal funds rate will range from 4.25% to 4.5%. The Fed’s move follows a 25 basis point cut in November and a larger-than-usual 50 basis point cut at its September meeting, which was the first rate cut since March 2020 and lowered them from the 5.25% range. To 5.5% – the highest level since 2001.

The Federal Open Market Committee (FOMC), the group within the Fed responsible for setting monetary policy, said in a statement that “labor market conditions have generally improved, and the unemployment rate has risen but remains low” while inflation has made progress. Toward the 2% target, it “remains fairly high.”

“The Committee seeks to achieve maximum employment and inflation at 2 percent over the long run. The Committee views the risks to achieving its employment and inflation goals as roughly balanced. The economic outlook is uncertain, and the Committee is attentive. The FOMC added that it risks both sides in its mandate.” Dual.

This is a developing story. Please check back for updates.