The Federal Open Market Committee decided to cut the federal funds rate yet again today, lowering its target range to 1.5% to 1.75%. This marks the third time the Fed has cut rates in as many months.
According to the FOMC itself, “Although household spending has been rising at a strong pace, business fixed investments and exports remain weak.” The Committee also noted “implications of global developments” and “muted inflation pressures” as reasons behind the change.
The reduction was largely anticipated by experts and is the third consecutive cut from the Committee. The trend began at the FOMC’s July meeting, when the majority of members voted for the first rate cut in nearly a decade.