Office San Ramon, CA

The Federal Open Market Committee (FOMC) of the Federal Reserve cut interest rates by 25 bps, with the Fed Funds target range now 3.5%-3.75%. This rate cut is not expected to significantly impact economic activity, which is currently expanding at a 2.5%-3.0% pace.

The Federal Open Market Committee (FOMC) voted to lower the Federal Funds rate target range by 25bps, from 4.25%-4.5% to 4%-4.25%. The context provided for this move was as important as the interest rate cut itself, slowing employment growth but continued inflation at levels “somewhat” higher than desirable.