The Fed Cut Rates Again but Deep Divisions Cloud Path Ahead
The New York Times••business
Key Points:
- The Federal Reserve lowered interest rates by 0.25 percentage points to a range of 3.5% to 3.75%, marking the third consecutive rate cut amid a divided Federal Open Market Committee (FOMC).
- The decision revealed significant internal disagreement, with some members favoring a larger half-point cut and others preferring to keep rates unchanged, highlighting tensions over balancing inflation risks and labor market strength.
- Stephen I. Miran dissented in favor of a bigger cut for the third meeting in a row, while Jeffrey R. Schmid and Austan D. Goolsbee voted against the rate reduction, reflecting rare division under Chair Jerome Powell's leadership.
- Powell acknowledged the split as a natural response to
