Federal Reserve Cuts Interest Rates For First Time This Year

Policymakers voted 11-1 in favor of a quarter-point cut to the central bank's benchmark rate

The Federal Reserve announced a highly anticipated interest cut Wednesday.

The decision marks the first rate cut this year and indicates that concerns about a slowing labor market now outweigh ongoing worries about inflation.

Policymakers voted 11-1 in favor of a quarter-point cut to the central bank’s benchmark rate. The decision puts the funds rate in a range between 4 to 4.25%.

The Fed also indicated that it expects two more rate cuts this year. However, seven of the 12 officials on the Fed’s rate-cutting committee indicated that rates should remain unchanged for the rest of the year.

The committee will meet again in October and December.