At its scheduled Federal Open Market Committee (FOMC) meeting on November 7th, the Federal Reserve announced that it reduced the target range for the federal funds rate by 0.25 percentage points to 4.50% to 4.75%. The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in the Plans for Reducing the Size of the Federal Reserve's Balance Sheet that were issued in May 2022. 

Recent economic indicators show that the US economy has continued to expand at a solid pace. US real GDP growth was estimated at 2.8% in the third quarter of 2024. Job gains have slowed and unemployment has moved up but remains low. Inflation has made progress toward the committee's target of 2%, but remains elevated. The United States Consumer Price Index (not seasonally adjusted) for All Urban Consumers increased 2.4% year-over-year in September 2024, down from 2.5% in August 2024. The committee judges that the risks to achieving its employment and inflation goals are roughly in balance. 

The Committee will continue to monitor economic developments and is prepared to adjust the monetary policy measures as appropriate, considering information on labor market conditions, inflation pressures and inflation expectations, and financial and international developments. The next scheduled FOMC meeting will be held on December 17-18, 2024.

Source: US Federal Reserve, FOMC Press Release;