BREAKING: Divided Fed Makes Money Decision Ahead of Christmas

Federal Reserve Chairman Jerome Powell announced the third interest rate cut of the year in a news conference Wednesday.

“Today, the Federal Open Market Committee decided to lower our policy interest rate by a quarter percentage point,” Powell said.

The rate cut brings the federal funds rate between 3.5% and 3.75%, following similar-sized rate cuts in September and October.

“My colleagues and I remain squarely focused on achieving our dual mandate goals of maximum employment and stable prices for the benefit of the American people,” Powell added.

Nine of the 12 Federal Open Market Committee members voted for the interest rate cut, while two regional Federal Reserve bank presidents dissented, saying they “preferred no change,” according to a news release.

Fed Governor Stephen Miran voted for a half-point cut, twice the rate the other committee members supported.

President Donald Trump, who has demanded interest rate cuts, nominated Miran, who had previously served as chairman of the White House’s Council of Economic Advisers.

According to NPR, this marked the first time in six years that an interest rate vote had been so divided.

Powell also said the government shutdown, which was the longest in U.S. history, impacted the economy and the Federal Reserve’s ability to get economic data.

“The temporary shutdown of the federal government has likely weighed on economic activity in the current quarter, but these effects should be mostly offset by higher growth next quarter, reflecting the reopening,” he noted.

“Conditions in the labor market appear to be gradually cooling and inflation remains somewhat elevated,” Powell added. “Inflation has eased significantly from its highs in 2022, but remains somewhat elevated relative to our 2% longer run goal.”

This is a breaking news story. Check back for updates.