Fed softens blow of hawkish cut with asset purchase restart

The FOMC overcame its divisions to vote for another interest rate cut today, albeit with three dissenting votes. The hawks influenced the accompanying policy statement, which notes that the FOMC will now consider both “the extent and timing” of additional policy rate adjustments. The new Summary of Economics Projections (SEP) shows the FOMC still expects only one more interest rate cut next year, but the range of projections is unusually wide.

We will be discussing the FOMC's latest policy decision in an online briefing at 4pm ET. Click here to register or to watch the video later.