Federal Reserve Cuts Interest Rates Again but Signals Uncertainty for December
The Federal Reserve has made another big move in the economy by cutting interest rates for the second time in a row. However, Fed Chair Jerome Powell surprised markets by saying it’s not certain whether another cut will come in December . Fed Cuts Rates to 3.75%–4% On Wednesday, the Federal Open Market Committee (FOMC) voted 10-2 to lower the main interest rate to a range of 3.75%–4% . This rate affects many everyday financial products, including credit cards, home loans, and car loans . The Fed also announced that it will end its balance sheet reduction program , known as quantitative tightening (QT) , on December 1 . This means the central bank will stop shrinking its massive $6.6 trillion portfolio of bonds and mortgage-backed securities. Disagreements Within the Fed Not everyone agreed with the decision. Governor Stephen Miran wanted a larger half-point cut , while Kansas City Fed President Jeffrey Schmid thought the Fed should not cut rates at all. Both expressed their d...