Federal Reserve FOMC Statement Highlights

1. Statement Overview: Cut interest rates by 25 basis points to 3.50%-3.75%, marking the third consecutive meeting with a rate cut. Milan supports a rate cut of 50 basis points, while Goolsbee and Schmid support maintaining the current rates.

2. Interest Rate Outlook: Will consider further adjustments to the magnitude and timing of interest rates. The median in the dot plot is completely consistent with September, expecting one rate cut each in the next two years.

3. Inflation Outlook: Inflation has risen compared to the beginning of the year and remains relatively high, consistent with previous statements. Lowered inflation expectations for next year in the SEP.

4. Economic Outlook: Economic activity has been expanding at a moderate pace, and uncertainty about the outlook remains high, consistent with previous statements. Raised GDP growth forecasts for the next three years across the board.

5. Labor Market: Removed the description of the unemployment rate as 'relatively low', believing that downside risks in employment have increased in recent months. The unemployment rate forecast for next year remains unchanged at 4.4%.

6. Reserve Purchases: Will begin purchasing Treasury bills on December 12, with $40 billion in Treasury bills to be purchased over the next 30 days. Removed operational restrictions on the standing overnight reverse repurchase operations.