Fed Meeting Today: FOMC Cuts Rates by a Quarter Point; Powell Says He'll Refuse to Resign if Trump Asks


Fed Meeting Today: FOMC Cuts Rates by a Quarter Point; Powell Says He'll Refuse to Resign if Trump Asks

The Federal Reserve cut interest rates by a quarter of a percentage point on Thursday in a move that preserves flexibility as officials contend with a cooling labor market and lower inflation.

Tuesday's election didn't alter the Federal Open Market Committee's policy path, with officials moving ahead with a rate cut as expected before the vote. The latest decision means the target range for the federal-funds rate is now 4.5%-4.75%.

The 25 basis-point cut comes after Fed officials lowered rates by an aggressive 50 basis points at their previous meeting in September.

In the weeks since the September meeting, a number of policymakers have emphasized that cuts of half a percentage point wouldn't be the norm, noting that the pace of pulling back on the high interest rates imposed in the bank's fight against inflation should be "gradual."

It was the first meeting of the FOMC since former President Donald Trump's election victory. Policymakers have said repeatedly that the Fed is apolitical and that their calls on interest rates are driven by economic conditions.

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