🔥Breaking News 🔥 The Fed cut interest rates by 25 basis points as expected. The decision was unanimous.

The FOMC statement had minimal changes.
The following is the full text of the statement.

Announcement: September 18, 2024, 2:00 PM (Eastern Time)

Recent indicators suggest economic activity continues to expand at a solid pace. Labor market conditions have slowed overall since the start of the year, with unemployment rising but still remaining low. Inflation has made further progress toward the committee’s 2% target, but is still somewhat higher.

The Commission wants to achieve maximum employment and inflation at 2% levels in the long run. The Commission has gained more confidence that inflation is moving towards sustainable 2%, and believes the risks in meeting employment and inflation targets are largely balanced. The economic outlook is uncertain, and the Commission is heeding the risks to both sides of the double target.

The committee decided to lower the federal funds rate target range by 1/2 percentage point to 4.5 percentage points to 4.75% in light of the progress in inflation. Given further adjustments to the federal funds rate target range, the committee will carefully balance economic data, changing prospects, and risks. The committee will continue to reduce its holdings of Treasury securities, institutional debt, and institutional mortgage securities. The committee is strongly committed to supporting maximum employment and bringing inflation back to the 2 percent target.

In evaluating the appropriate stance of monetary policy, the Commission will continue to monitor the implications of several factors, including information on the economic outlook. The Commission is prepared to adjust its monetary policy stance appropriately if there is a risk of hampering the achievement of its goals. The Commission’s assessment will take into account a wide range of information, including labor market conditions, inflationary pressures and inflation expectations, and financial and international development.

Those who voted for the monetary policy decision were Chair Jerome Powell, Vice Chairman John C. Williams, Thomas L. Barkin, Michael S. Barr, Rafael W. Bostic, Michelle W. Bowman, Lisa D. Cook, Mary C. Daly, Beth M. Hammock, Philip N. Jefferson, Adriana D. Coogler, and Christopher J. Waller, who preferred a rate cut range by a quarter of a percentage point at the meeting.

This provides information on the U.S. Federal Reserve’s decision to cut interest rates and future policy directions.