US EditionDivided Fed approves third rate cut this year, sees slower pace ahead
- On Wednesday, the Federal Reserve reduced its influential interest rate by a quarter point, marking the third cut this year and lowering the federal funds rate to about 3.6%.
- Alternative data show a softer labour market as ADP monthly private jobs report revealed small businesses shed 120,000 jobs in November, while inflation remains somewhat elevated this year.
- The committee's dissent — the largest since September 2019 — included three Fed officials: Stephen Miran voted for a half-point cut, while Jeff Schmid and Austan Goolsbee preferred no change.
- In projections released with the statement, Fed officials said available indicators show moderate economic activity, growth picking up next year, one more cut next year, and inflation expectations decline next year.
- Investors had largely priced in the cut but Fed Chair Jerome Powell recently warned there is no risk-free path, while affordability across the U.S. and a data blackout fuel caution.
165 Articles
165 Articles
China Daily
US Fed cuts interest rate by 25 basis points
The U.S. Federal Reserve cut interest rates by another 0.25%, but did not specify whether another cut would occur at the next meeting. Meanwhile, President Trump is calling for the Fed to double its interest rate cuts.
Divided Fed makes 3rd straight rate cut, signals one more by end of 2026
The U.S. Federal Reserve on Wednesday cut its benchmark interest rate by 0.25 percentage point for the third straight time, though it expects only one such reduction in 2026, amid growing divisions among its policymakers over near-term economic conditions.
US Federal Reserve cuts interest rates for the third straight time
The US Federal Reserve has lowered its benchmark rate by a quarter percentage point, to a range of 3.5% - 3.75%, but signalled there will be fewer cuts going forward amid a cooling labour market and persistently high inflation. The vote was not unanimous, with two calling for keeping rates unchanged, and Trump ally Stephen Miran wanting a larger cut. Also in the segment, the United Arab Emirates is turning towards AI as part of a strategy at en…
2nd LD: U.S. Fed cuts interest rate by 25 basis points
WASHINGTON, Dec. 10 (Xinhua) -- The U.S. Federal Reserve on Wednesday decided to lower the target range for the federal funds interest rate by 25 basis points to 3.5 to 3.75 percent, marking its third rate cut this year. Read full story
In Washington, there is speculation about who Republican frontrunner Donald Trump will nominate as the next chairman of the US Federal Reserve.
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