The Federal Reserve lowered the Federal Funds rate range today by 25 basis points (bps) to 1.50% - 1.75%, a move that was widely expected and fully priced into the market. There continues to be a division within the voting members, with Esther George and Eric Rosengren again preferring to keep rates steady. James Bullard returned to voting with the consensus for the 25 bps cut. There were no updated economic forecasts or dot plot projections from this meeting to glean additional information on future rate projections.
Language Changes and Themes
- Business fixed investment and exports “remain weak”
- Removed the “act as appropriate to sustain the expansion”
- Replaced with a promise to monitor data as the Fed “assesses the appropriate path of the target range for the federal funds rate”
- Remainder of the release was virtually unchanged
To read the full paper, click here.