Federal Reserve Cuts Interest Rates

As expected, the Federal Reserve has announced that it has cut the key interest rates it controls by 25 basis points. It was the Fed’s first rate cut in more than a decade.

Specifically, it has cut the target rate for the Fed Funds rate to 2.0%-2.25%. The previous range was 2.25% to 2.50%.

This is a developing story. Return to this post for updates.

UPDATE 1

The Fed also ended its "Quantitative Tightening" two months early:

The Committee will conclude the reduction of its aggregate securities holdings in the System Open Market Account in August, two months earlier than previously indicated.

UPDATE 2

The vote to cut rates was 8 to 2.

Voting for the cut  were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michelle W. Bowman; Lael Brainard; James Bullard; Richard H. Clarida; Charles L. Evans; and Randal K. Quarles.

Voting against the action were Esther L. George and Eric S. Rosengren, who wanted to maintain the target range for the federal funds rate at 2.25% to 2.50%.

UPDATE 3

Deep dive analysis in the EPJ Daily Alert.

-RW