Fed cuts rates again as divide deepens
The Federal Reserve cut interest rates by a quarter point on Wednesday, marking its second straight reduction as officials work to protect jobs amid slower hiring. The central bank also announced it will stop shrinking its asset holdings starting on Dec. 1.
The Federal Open Market Committee voted 10-2 to lower the benchmark rate to a range of 3.75 percent to 4 percent. Two officials broke from the majority, with Governor Stephen Miran pushing for a larger half-point cut and Kansas City Fed President Jeff Schmid arguing against any reduction.
Policymakers noted that job growth has weakened and employment risks have risen in recent months. They described economic expansion as moderate, while acknowledging that inflation remains above the 2 percent target, despite easing from earlier highs.
The decision follows the Fed’s first rate cut of the year last month, after hiring data showed signs of cooling. Chair Jerome Powell had warned that further weakening in job openings could lead to higher unemployment. Some officials have expressed concern about lowering rates too quickly while inflation persists above target levels.
