For the third time this year, the Federal Reserve cut interest rates by a quarter of a percent. The committee charged with setting interest rates reduced its target range to between 1.5% and 1.75%. The range sat at between 2.25% and 2.5% for more than 10 years until cuts began in July.
As CNBC writes, the reductions are expected to gradually lead to lower interest rates for many Americans with loans and credit cards. The changes are not, however, anticipated to provide significant relief for Americans saddled with debt, and it may also lead to worse returns for people with savings accounts.
Speaking on the cut, the Federal Open Market Committee said the move “supports the Committee’s view that sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee’s symmetric 2 percent objective are the most likely outcomes, but uncertainties about this outlook remain.”
The FOMC may hold off on additional reductions, Bloomberg reports, as the committee removed its commitment to “act as appropriate to sustain the expansion” from its closely watched statement on the cuts. Jerome Powell, Federal Reserve chairman, suggested in a press conference today that the current range is “likely to remain appropriate,” barring some significant change, such as a “really significant” spike in inflation.