Federal Reserve Cuts Fed Funds Rate by .25% from 2.25% to 2.00%

Federal Reserve Lowers Fed Funds Rate

The Federal Reserve cut the Fed Funds Rate by 0.25% from 2.25% to 2.00% today. The Federal Reserve also signaled that its rate cutting may be coming to an end. The smaller cut in the Fed Funds Rate, which was the 7th cut in the Fed Funds Rate since September 2007, was conservative compared to recent larger cuts and reflected upward pressure on inflation.

The Federal Reserve Board's Federal Open Market Committee (FOMC) voted 8 to 2 to cut the Fed Funds Rate at which banks lend money to each other by 0.25% from 2.25% to 2.00%, the lowest Fed Funds Rate since November 2004.

Discount Rate Also Lowered

The FOMC also lowered the discount rate charged to banks and brokers that borrow funds directly from the Federal Reserve's Discount Window by 0.25% from 2.50% to 2.25%.