The Federal Reserve lowered interest rates by another quarter of a percentage point on Wednesday, a move that hedges against a weakening labor market.
At the conclusion of a two-day policy meeting, the Federal Open Market Committee voted to lower its target for the federal-funds rate to 3.75%- to 4.00%, as investors expected. Ahead of the decision, the interest-rate futures market had the odds locked in at 100% that officials would trim rates by a quarter percentage point.
“Uncertainty about the economic outlook remains elevated. The Committee is attentive to the risks to both sides of its dual mandate and judges that downside risks to employment rose in recent months,” the FOMC statement noted.
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