Fed Cuts Rates 3rd Time, Signals Higher Bar for Future Reductions Amid Divisions

• Federal Reserve cut key interest rates by 25 basis points for the third consecutive time.
• The Fed indicated it may keep rates steady in the coming months, signaling a higher bar for future reductions.
• The benchmark rate is now around 3.6%, its lowest level in nearly three years, expected to ease borrowing costs.
• Three Fed officials dissented from the decision, highlighting deep divisions within the committee.
• Divisions persist between officials supporting rate cuts to bolster hiring and those preferring steady rates due to inflation concerns.

Why It Matters: This impacts your borrowing costs for loans, mortgages, and credit cards.