The Federal Reserve announced a quarter point rate cut on Dec. 10, although the committee vote was not unanimous.
One committee member wanted a half point reduction while two other members did not think a rate cut was warranted.
It the Federal Open Markets Committee Statement release, it stated, “Available indicators suggest that economic activity has been expanding at a moderate pace. Job gains have slowed this year, and the unemployment rate has edged up through September. More recent indicators are consistent with these developments. Inflation has moved up since earlier in the year and remains somewhat elevated...
“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 rose in recent months.
In support of its goals and in light of the shift in the balance of risks, the committee decided to lower the target range for the federal funds rate by 0.25% point to 3.5% to 3.75%. In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the committee will carefully assess incoming data, the evolving outlook, and the balance of risks.
