(Bloomberg) -- Here are key takeaways from the Federal Reserve's interest-rate decision on Wednesday:
- Federal Open Market Committee votes 11 to 1 to lower benchmark rate by 50 basis points to target range of 4.75%-5.0%, the first rate cut in more than four years
- Fed Governor Michelle Bowman votes against decision in favor of a smaller, quarter-point cut, the first such dissent since June 2022 and the first time a Fed governor has dissented since September 2005
- “Dot plot” of rate projections shows the median official expected to lower rates by a percentage point by year-end, implying two more quarter-point cuts or one larger, half-point cut; nine of 19 officials penciled in 75 basis points of cuts or less
- Median rate forecast for 2025 falls to 3.4% from 4.1% in June, implying four additional quarter- point moves next year
- Statement adds language to say the committee is “strongly committed to supporting maximum employment” in addition to returning inflation to its 2% goal
- Statement says that “in considering additional adjustments” to rates, officials will assess incoming data, evolving outlook and balance of risks
- Fed tweaks language to note job gains “have slowed;” says inflation “has made further progress toward the committee's 2% objective but remains somewhat elevated”
- Statement says committee has gained greater confidence that inflation is moving sustainably toward 2% goal
- Statement notes that risks to achieving employment and inflation goals “are roughly in balance”
For Bloomberg's TOPLive blog on the Fed decision and press conference, click here
--With assistance from Catarina Saraiva.
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