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 for Connect Money, where he brings nearly three decades experience of market insights as a financial journalist, analyst and senior portfolio manager for leading financial publications, advisory firms, and hedge funds. In his role as Editorial Director, Joe is responsible for the selection of content and creation of daily business news covering the financial markets, including Alternative Assets, Direct Investment and Financial Advisory services. Before joining Connect Money, Joe was a financial journalist for the Wall Street Journal, regularly publishing feature stories and trend pieces on the foreign exchange, global fixed income and equity markets. Joe parlayed his experience as a financial journalist into roles as a Senior Research Analyst and Portfolio Manager, writing daily and weekly market analysis and managing a FX and US equity portfolio. Joe was also a contributing writer for industry magazines and publications, including SFO Magazine and the CMT Association. Joe earned a B.S.B.A. in Finance from The American University. He holds the Chartered Market Technician (CMT) designation and is a member of the CFA Institute.

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