Fed Cuts Rates In First Decision Since Election

The Federal Reserve announced Thursday that it would lower its federal funds rate target range by 0.25% in a push to boost the U.S. economy.

The Fed’s decision to lower the range to between 4.50% and 4.75% follows a September cut of 0.50% as inflation decelerates and the labor market softens. The previous rate cut was preceded by several democratic senators calling for an aggressive move from the Fed, with speculation that a large cut could help boost Vice President Kamala Harris’ perception with voters ahead of the presidential election.

Prior to the September cut, the Fed had kept its target range between 5.25% and 5.50%, which was the highest range since 2001. September marked the first cut since March 2020 and the first change to Fed policy since July 2023.