We've been waiting for this:
This bumps the benchmark interest rate down to the 3.75%-4% range. It's the second 25-basis-point cut of the year.
From CNBC:
The central bank's action is designed to reduce the cost of borrowing throughout the economy. A lower rate tends to have immediate effects on auto loans and credit cards. Mortgage rates are not directly tied to the Fed's benchmark rate, but they can move in parallel.
It comes as the U.S. economy grapples with a slowing labor market and stubborn price growth.
The Fed voted 10-2 to make the cut, and Jerome Powell in a press conference said another potential cut in December is "not a foregone conclusion."
More:
In addition to the rate move, the Fed announced that it would be ending the reduction of its asset purchases - a process known as quantitative tightening - on Dec 1.
Now we sit back and wait to see who Trump chooses to replace Powell, whose term is set to end in May.
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