Fed Cuts Rates

As expected, the Federal Open Market Committee (FOMC) cut interest rates by 25 basis points Wednesday at the conclusion of its two-day monetary-policy setting meeting.

Despite low inflation and solid jobs reports, the committee cited global developments for the economic outlook and muted inflation pressures as causes for the cut. The federal funds target rate will now be set to a range of 2 to 2.25 percent.

"This action supports the Committee's view that sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee's symmetric 2 percent objective are the most likely outcomes, but uncertainties about this outlook remain," the Federal Reserve said in a statement.

Chair Jerome Powell earlier this month presented the Fed’s semiannual Monetary Policy Report to Congress and acknowledged that "uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the U.S. economic outlook."

The next FOMC meeting is scheduled for September 17-18. The committee’s tentative 2020 schedule is available here