NEW YORK (NewsNation) — The Federal Reserve on Wednesday announced a 0.25% interest rate cut.
According to CME FedWatch, there was a 96% chance of a quarter-point cut and a 4% chance of a half-point cut. Analysts said the only question is how deep the cut will be — and how quickly it will impact businesses and consumers.
During a Wednesday press conference, Fed Chair Jerome Powell said each policy decision that is made will be based on incoming data.
The Fed has faced continued urging from President Donald Trump amid signs of a cooling jobs market.
Stephen Miran, Trump’s latest Fed appointee, is the only dissenting vote, according to the Fed’s news release. Miran wanted a bigger cut.
Mortgage rates drop to a 3-year low
Mortgage rates have already fallen to a three-year low, with the average 30-year loan now at 6.35%, down from nearly 7% in January.
Experts have said a Fed cut could push borrowing costs lower still, benefiting homeowners, credit card holders and car buyers, while boosting hiring and company earnings.
Mitch Roschelle, financial analyst and CEO of M2 Communities, told “Morning in America” Wednesday that the Fed is worried that lowering rates too much could reignite inflation, leaving them “playing whack-a-mole.”
Still, he argues the Fed should make deeper cuts and says policymakers have “taken their eye off the ball” when it comes to the labor market.
Senate confirms Trump adviser to Fed board
The Senate confirmed Trump ally Stephen Miran this week as a member of the Fed’s Board of Governors, allowing him a voice to push for a more aggressive rate cut.
While Trump has pushed to secure a majority on the Federal Open Market Committee, he faces resistance. Governors Michelle Bowman and Christopher Waller, both Trump appointees, may side with Miran, but the 12-member panel also includes Powell and Fed Governor Lisa Cook, whose firing by Trump was recently blocked in the courts.