In a widely expected move, the Fed voted to cut the federal funds rate by 25 bps. Of the 12 voting members, 11 voted in favor of a 25 bps reduction while Fed Governor Stephen Miran voted for a 50 bps cut.
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The Fed’s decision came in line with CME’s FedWatch tool, which assigned 96% odds of a 25 bps reduction prior to the announcement. A 50 bps cut carried slim odds of 4%.
“Recent indicators suggest that growth of economic activity moderated in the first half of the year. Job gains have slowed, and the unemployment rate has edged up but remains low. Inflation has moved up and remains somewhat elevated,” said the central bank.
*This is a developing story. Stay tuned for additional updates*
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