Federal Reserve Cuts Rate by 25 Basis Points to 4.50%-4.75% Range in Second Cut of 2024
The Federal Open Market Committee (FOMC) of the U.S. Federal Reserve voted on November 7 in Washington, D.C., to lower the target range for the federal funds rate by 1/4 percentage point to 4-1/2 to 4-3/4 percent, the second rate cut of 2024 after a 50-basis-point cut in September.
In its statement, released at 2:00 p.m. EST, the Committee said recent indicators suggested that economic activity had continued to expand at a solid pace, labor market conditions had generally eased since earlier in the year, and the unemployment rate had moved up but remained low. Inflation had made progress toward the Committee's 2 percent objective but remained somewhat elevated. The Committee judged that the risks to achieving its employment and inflation goals were roughly in balance.
The Committee said that in considering additional adjustments to the target range, it would carefully assess incoming data, the evolving outlook and the balance of risks, and that it would continue reducing its holdings of Treasury securities, agency debt and agency mortgage-backed securities. It said it was strongly committed to supporting maximum employment and returning inflation to its 2 percent objective. All 12 voting members, led by Chair Jerome H. Powell, voted for the action.
In a related implementation note, the Board of Governors voted unanimously to lower the interest rate paid on reserve balances to 4.65 percent and approved a 1/4 percentage point decrease in the primary credit rate to 4.75 percent, both effective November 8, 2024. (Source: Federal Reserve)
Source: Federal Reserve
Published by GSM · USA (original Chinese edition)
Photo: 图：美联储总部马里纳·埃克尔斯大楼（Eccles Building）正面，位于美国华盛顿。美联储官方照片（Britt Leckman 摄），美国政府作品、公共领域，经 Wikimedia Commons。 / Photo: Front entrance of the Marriner S. Eccles Building, headquarters of the Federal Reserve in Washington, D.C. Official Federal Reserve photo by Britt Leckman, U.S. government work, public domain, via Wikimedia Commons.
