Fed meeting live updates: Fed reduces interest rate by a quarter point

On October 29, the Federal Reserve announced a quarter-percentage point cut in interest rates, its second consecutive rate cut.

This move brought the Fed's benchmark interest rate to a range of 3.75% to 4%. Some economists believe another rate cut could occur at the Fed's December meeting, although a third consecutive rate cut is not guaranteed.

This two-day meeting took place amid the ongoing government shutdown, which delayed the September employment report, a key statistic that typically helps influence Fed rate decisions. Without that official data, policymakers turned to private-sector indicators and pushed for a rate cut, indicating more concern about a cooling job market than sluggish inflation.

Typically, the Fed lowers interest rates to stimulate the economy and raises or holds them steady to curb inflation. The Fed kept rates steady for most of 2025 while monitoring inflation and the potential impact of new tariffs.

However, recent weak employment data and low inflation prompted the central bank to ease rates.

The Fed said in a statement, "Available indicators suggest that economic activity is expanding at a slower pace. Employment growth has slowed this year, and the unemployment rate has risen, but remained low through August." The Fed assessed that downside risks to employment have increased in recent months.

Ten of the 12 voting members of the Federal Open Market Committee voted in favor of the move. Stephen Miron supported a half-percentage point cut, and Jeffrey Schmidt supported keeping rates steady.