FOMC announces second straight quarter-point rate cut

The Federal Open Market Committee (FOMC) decided to lower the target range for the federal funds rate by 1/4 percentage point at its meeting Wednesday. The range will now be 3.75% to 4%. Federal Reserve Chair Jerome Powell noted indicators suggest economic activity has been “expanding at a moderate pace” as job gains have slowed, and the unemployment rate has edged up but remained low through August.

“The FOMC trimmed rates by 25 basis points at its next-to-last meeting of the calendar year. Chair Powell’s press conference provided more intrigue, as he appeared to push back on the consensus view that another rate cut is coming in December,” said America’s Credit Unions Chief Economist Curt Long. “Reliable economic data will remain in scarce supply until the government reopens, which further clouds the outlook. Regardless of economic conditions, credit unions remain committed to assisting their members in times of need.”