Fed Lowers Fed Funds Rate By 0.25% to A 3.75%/4.00% Target At October 2026 Meeting "The Federal Reserve has lowered interest rates by 25 basis points at its October meeting. Its new rate target is 3.75% to 4.00%. The cut follows a 25 basis point cut in September.
The decision has two dissents, with one member arguing for no cut and one member arguing for a 50 basis point cut.
The Fed statement indicates that job gains have moderated and inflation has moved up. We seem to be entering a stagflationary environmment where anything that the Fed does risks "
Federal Reserve Cuts Fed Funds Rate by 25 Basis Points to A 4.00% - 4.25% Target "As expected, the Federal Reserve cut interest rates by 25 basis points to a 4.00% to 4.25% target. This move marks the Fed's first cut since December 18, 2024.
Recent measurements show that inflation has moved up recently and remains far from the Fed's 2% target. There continues to be a strong risk that inflation will lead to still higher inflation. The Fed's statement nonetheless suggests that the balance of risks has changed and that weakening employment numbers show that "