October 30, 2019
Citing “the implications of global developments for the economic outlook as well as muted inflation pressures,” the Federal Reserve voted for its third consecutive rate cut in the federal funds rate. Wednesday’s action by the Fed’s Federal Open Market Committee (FOMC) lowers the target range for the benchmark rate to a range of 1.5% to 1.75%.
Voting for the rate cut were Fed chair Jerome Powell, vice chair John C. Williams and regional Fed presidents Michelle W. Bowman, Lael Brainard, James Bullard, Richard H. Clarida, Charles L. Evans and Randal K. Quarles. Voting against this action were Esther L. George and Eric S. Rosengren, who preferred to maintain the current target of 1.75% to 2%.
In a statement, the FOMC said the cut supported its view that “sustained expansion of economic activity, strong labor market conditions and inflation near the committee’s symmetric 2% objective are the most likely outcomes, but uncertainties about this outlook remain.”
Hinting that the Oct. 30 rate cut may be the last for a while, the statement added that the FOMC “will continue to monitor the implications of incoming information for the economic outlook as it assesses the appropriate path of the target range for the federal funds rate.”
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