The Federal Open Market Committee (FOMC) lowered the target range for the federal funds rate by a half point, making it 4.75% to 5% during its two-day meeting that ended Wednesday.
“The FOMC cut rates more aggressively than it had previously forecast, an acknowledgment that inflation is subsiding and risks to the labor market are rising. The Committee’s forecast indicates another 50 basis points of rate cuts this calendar year, followed by a full percentage point reduction in 2025,” said America’s Credit Unions Deputy Chief Economist/Head of Emerging Issues Curt Long. “Regardless of the rate environment, credit unions will respond to their members’ needs by providing them with better rates and lower fees than the competition.”
The committee’s statement noted that the cut came “in light of the progress on inflation and the balance of risks.”
Regarding additional adjustments to the target range, it will “carefully assess incoming data, the evolving outlook, and the balance of risks.” The committee reiterated its commitment to “supporting maximum employment and returning inflation to its 2% objective.”
The FOMC next meets Nov. 6 and 7.
