Monetary Policy

The Federal Reserve cut the target federal funds rate by 25 basis points to 3.50%–3.75%—its third straight cut—despite three dissents (Austan Goolsbee and Jeff Schmid wanted to hold, while Stephen Miran favored a larger half‑point cut) and released projections penciling in just one more cut in 2026 with 2026 GDP growth seen at about 2.3% and PCE inflation around 2.4%. To keep reserves ample the New York Fed will buy roughly $40 billion of short‑term Treasury bills starting Friday, and markets reacted with modest stock gains while Treasury yields eased; Chair Powell will hold a press briefing this afternoon.