Article: A Quarter-Point Cut, But Is It the Last?(Federal Reserves; federal funds rate)(Brief article)

Byline: Kirk Shinkle

The Federal Reserve on Wednesday lowered its federal funds rate by a quarter-percentage point to 4.5 percent, wrapping up a two-day meeting that had investors on their toes. As expected, it reduced the rate banks charge one another on overnight loans while also chopping a similar amount off the discount lending rate it offers banks directly.

While noting solid growth in the current economy and lessening strain in financial markets, the Fed's closely watched post-meeting statement was both gloomy on the way forward and coy about future rate reductions.

Predicting that "the pace of economic expansion will likely slow in the near term, partly ...

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