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National  + Kansas City  + Finance  | 

Fed Trims Rates Quarter-Point, Signals Higher Bar to Further Cuts

The Federal Reserve cut the federal funds rate by an expected quarter-point to a range of 3.50%-3.75% on Wednesday.  

Three Federal Open Market Committee members dissented from the rate cut. Governor Stephen Miran favored a larger half-point reduction—for the third consecutive meeting. Kansas City Fed President Jeffrey Schmid again voted to hold rates steady, joined this time by Chicago Fed President Austan Goolsbee. 

Expectations for the Federal Reserve’s December decision have swung sharply since the October 29 FOMC meeting, when Chair Jerome Powell cautioned that a rate cut was far from certain. The prolonged government shutdown has deprived policymakers of key economic data, adding to the uncertainty and exposing divisions within the Committee, as reflected in today’s decision. 

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About Joe Palmisano

Joe Palmisano is editorial director of Connect Money, where he oversees daily coverage of alternative assets, direct investments, financial advisory and the economy. He brings three decades of experience as a financial journalist, analyst and portfolio manager. Before joining Connect Money, Palmisano wrote for The Wall Street Journal, covering foreign exchange, global fixed-income and equity markets. He later served as a senior research analyst and portfolio manager, producing market analysis and managing foreign exchange and U.S. equity portfolios for FX Concepts. His work has also appeared in SFO Magazine and CMT Association publications. Palmisano earned a bachelor’s degree in finance from The American University and holds the Chartered Market Technician (CMT) designation and is a member of the CFA Institute.

  • ◦Financing
  • ◦Policy/Gov't
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