The US Federal Reserve lowered its benchmark interest rate on Wednesday for the third time in a row, but it hinted that rates would remain constant in the upcoming months. This might infuriate President Donald Trump, who has called for drastic cuts to borrowing costs.
The rate was lowered to roughly 3.6% on Wednesday, the lowest level in almost three years. Over time, lower Fed rates may result in lower borrowing costs for credit cards, auto loans, and mortgages, while market forces may also have an impact.
The decision was opposed by three Fed officials, the highest number in six years and an indication of strong disagreements on a group that usually reaches a consensus. Stephen Miran, who Trump appointed in September, voted for a half-point reduction in the Fed’s rate, while two other officials voted to maintain it unchanged.
The Fed may enter a more controversial phase after its meeting in December. Because inflation is still higher than the central bank’s 2% target, officials are divided between those who favor lowering rates to encourage hiring and those who would rather maintain rates steady.
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