Split Fed Cuts Another 25

A divided FOMC announced another 25 basis point cut in the fed funds rate, bringing the lower band of the overnight target range down from 2.00% to 1.75%. This move was widely expected, although the Kansas City and Boston Fed Presidents dissented again, preferring to keep rates unchanged, while the St Louis Fed President thought a 50 basis point cut was more appropriate. The official statement, released immediately after the meeting, showed committee members believe household spending has been rising at a strong pace, although business fixed investment and exports have weakened.

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