Good afternoon. Today is Wednesday, December 10th, and I'm Rina Sherble filling in for Kim Khan.

As widely expected, the Federal Open Market Committee reduced its benchmark interest rate by 25 basis points on Wednesday its third straight cut, as the Federal Reserve's monetary policy arm sought to balance its dual mandate of full employment and price stability. It appeared to see the risk to employment as the more pressing issue.

The policy easing brought the federal funds rate target range to between 3.5 and 3.75 percent,

its lowest level in three years. The decision showed an increased number of dissents with three

voting members disagreeing with the majority.

Fed Governor Stephen Moran again preferred a 50 basis point cut, while Kansas City Fed President

Jeffrey Schmidt again preferred to keep the rate unchanged. And this time Chicago Fed President

Austin Gulesby also preferred no rate change. The last time the FOMC had three dissents to a decision was in 2019.

The policymakers noted that economic activity has expanded at a moderate pace,

but that job gains have slowed through 2025, and inflation has moved up and remains elevated. In its statement, the Fed said the committee

is attentive to the risks to both sides of its dual mandate and judges that downside risks

to employment rose in recent months. The FOMC issued a median federal funds rate projection of

3.4% at the end of 2026, indicating only one

rate cut for the year unchanged from its September summary of economic projections. The range of

estimates, though, widened to between 2.1 and 3.9% from the September projection of between 2.6 and 3.9%, signaling a broader

range of views about the rate path next year. The statement gave no indication of whether its next

move would be a cut, a hike, or no change. In its standard Fed speak, it said, in considering the extent and

timing of additional adjustments to the target range for the federal funds rate, the committee

will carefully assess incoming data, the evolving outlook, and the balance of risks.

Joseph Bruce Wallace, RSM, U.S. principal, and chief economist said of the meeting,

a very hawkish rate cut based on the statement and the summary of economic projections.

Six members of the committee wanted no change based on the dot plots.

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