The Federal Reserve recently reduced the benchmark interest rate by a quarter point in its second cut of 2025.
The reduction takes the federal funds rate, the interest rate banks charge each other for short-term loans, to a target range of 3.75%-4%. The change comes after the rate-setting Federal Open Market Committee (FOMC) reduced rates by a quarter point in September.
Stephen Miran and Jeffrey Schmid cast dissenting votes for the reduction. Miran preferred a half-point cut, while Schmid preferred no change.
Additionally, the Fed announced that it would be concluding the reduction of its aggregate securities holdings on Dec 1.