The Fed Cuts Interest Rates Again By A Quarter Point, December Uncertain

As expected, the Federal Reserve is lowering interest rates by a quarter-percentage point.   

It marks the second straight interest rate cut. The benchmark rate is now in a range of three-point-75-percent to four-percent.

The Committee voted 10-2 in favor of cutting interest rates by a quarter-point to between 3.75% and 4%, down from the 4% to 4.25% range policymakers opted for during the FOMC’s meeting last month.

Trump picked Fed Governor Stephen Miran again cast a dissenting vote, preferring the Fed do more with a half-point cut.

Investors are hoping for an additional quarter-point reduction to interest rates coming up at the FOMC’s last meeting in December.

But Federal Reserve Chair Jerome Powell said that another rate cut in December is not certain.

“There were strongly differing views about how to proceed in December,” Powell said at his post-meeting press conference, while repeating that no decisions have been made.

“I always say that. It is a fact that we don’t make (advanced) decisions, but I am saying something in addition here: That it is not to be seen as a foregone conclusion. In fact, far from it.”

Needless to say, Wall Street is not happy about it.