U.S. Fed Makes 2nd Qtr Pct Point Rate Cut for This Year

SECAUCUS, NJ (DTN) – The Federal Reserve announced on Wednesday (10/29) a second straight quarter-percentage point cut in U.S. interest rates aimed at bolstering a flagging jobs market.

“Job gains have slowed this year, and the unemployment rate has edged up. In support of its goals and in light of the shift in the balance of risks, the Committee decided to lower the target range for the federal funds rate by 1/4 percentage point,” the Fed’s policy-making Federal Open Market Committee (FOMC) said in a statement.

It was the Fed’s second-rate reduction after the September 17 cut of another quarter-percentage point and brought key U.S. lending rates down to a range of between 3.75% and 4%.

U.S. unemployment ticked up to a near four-year high of 4.3% in September.  Following Wednesday’s rate decision, the FOMC has another 10 policy meetings between now and the end of 2026 to adjust rates.