FOMC announces quarter-point rate cut

The Federal Open Market Committee (FOMC) announced a quarter-point reduction in the target range for the federal funds rate, to 4% to 4.25%. Federal Reserve Chair Jerome Powell said recent indicators suggest economic growth moderated in the first half of the year as job gains slowed; unemployment has edged up (but remains low), and inflation has moved up and remains somewhat elevated.

“The FOMC followed through with a widely anticipated rate cut at its September meeting. While the committee’s statement and rate outlook moved in a dovish direction, the outlook for growth and the labor market strengthened,” said America’s Credit Unions Chief Economist Curt Long. “Chair Powell termed the committee’s decision a ‘risk management cut,’ which may suggest less urgency to ease policy going forward. Regardless, borrowers will be pleased with today’s actions and find that while rates may change, one thing remains constant: that credit unions offer the lowest loan rates in the marketplace.