Federal Reserve FOMC Latest Statement Key Points
1. Interest Rate Adjustment: Cut interest rates by 25 basis points to 3.50%-3.75%, marking the third consecutive rate cut; Milan advocates a 50 basis point cut, while Goolsbee and Schmidt support maintaining the current interest rate.
2. Interest Rate Outlook: The magnitude and timing of future rate adjustments will be considered; the median in the dot plot remains the same as in September, with expectations for one rate cut each in the next two years.
3. Inflation Situation: Inflation has risen compared to the beginning of the year and remains high, with statements consistent with previous ones; the SEP report has lowered next year's inflation expectations.
4. Economic Performance: Economic activity is moderately expanding, and uncertainty about the outlook remains high (statement unchanged), with upward adjustments to GDP growth rates for the next three years.
5. Labor Market: The description of the unemployment rate as “low” has been removed, as the risk of a downturn in employment has increased in recent months; the unemployment rate forecast for next year remains at 4.4%.
6. Reserve Purchases: Treasury bill purchases will start on December 12, with plans to buy $40 billion within 30 days; the restriction on the permanent overnight repurchase operation has been lifted.
