The Federal Reserve lowered its benchmark interest rate by 25 basis points in response to slowing job growth, making it the second consecutive rate cut. The central bank also announced a halt to the shrinking of its balance sheet on December 1, after shedding over $2 trillion in assets since 2022. The Federal Open Market Committee voted 10-2 to set the federal funds rate target range at 3.75%-4%, with concerns about moderate economic growth and somewhat elevated inflation. Treasury yields and the U.S. dollar rose in reaction to the news, while the S&P 500 maintained gains. Governor Stephen Miran advocated for a larger rate cut, but Kansas City Fed President Jeff Schmid opposed any reduction.

Read more at Quiver Quantitative: Federal Reserve Cuts Interest Rates by 25 Basis Points, Ends Balance Sheet Reduction