Interest Rates

FOMC officials on both ends of the spectrum voted against the move, as both inflation and unemployment are higher than the Fed wants them to be.

The FOMC voted 10-to-2 to lower the target range for the federal funds rate by a quarter percentage point, to 3.75%–4%.

The absence of a full suite of official economic data has ramped up concern that the Fed won’t get a clear read on how the economy is evolving, increasing the potential for policy mistakes as the Fed’s mandates of price stability and maximum employment are pulling officials in opposite directions.

Congratulations to Bristol Myers Squibb on winning this year’s silver Alexander Hamilton Award in Financial Risk Management!

Other FOMC members remain concerned about inflation and do not currently support an another interest rate cut in October.

Although inflation remains “somewhat elevated,” FOMC officials agreed to cut interest rates because “downside risks to employment have risen.”