Fed cuts benchmark rate by 25 basis points, in line with forecasts

The U.S. Federal Reserve's Federal Open Market Committee (FOMC) has announced a 25-basis-point cut to the benchmark interest rate, a move that aligns with market expectations. The decision lowers the target range for the federal funds rate to 3.50% to 3.75%. Nine members voted in favor of the cut, while three dissented. Kansas City Fed President Jeffrey Schmid and Chicago Fed President Austan Goolsbee argued for holding rates steady, while Fed Governor Steve Miran advocated for a 50-basis-point reduction.