The Federal Reserve has lowered the target range for the federal funds rate by a quarter-percentage point to 3.5% to 3.75%.
The decision by the central bank’s policy making Federal Open Market Committee had three of the 12 committee members dissenting – Stephen I. Miran sought a half-percentage point cut while Austan D. Goolsbee and Jeffrey R. Schmid preferred no change to the target range for the federal funds rate.
In explaining its decision, the Fed noted that “available indicators suggest that economic activity has been expanding at a moderate pace,” adding that “inflation has moved up since earlier in the year and remains somewhat elevated.”
The Fed added that “reserve balances have declined to ample levels and will initiate purchases of shorter-term Treasury securities as needed to maintain an ample supply of reserves on an ongoing basis.”
The next decision on rates will be published on Jan. 28, 2026.
People getting excited by this news like it instantly helps real estate or buyers do not fully (or at all) understand how the mortgage rates or the markets work.
Also, politically speaking, those that think this is some great win BY the current regime do not understand that rates go lower because the FED is trying to balance the market and stem inflation.
So maybe slow that roll, because it isn’t the great news way too many out there think, ini either regard.
So, because you don’t like the current President this must be bad?
Or at least, it cannot be good.
Think deeper that that my friend.