Recent data shows that economic growth slowed in the first half of the year. Job creation has decreased, and the unemployment rate has slightly increased but remains low. Inflation has risen and continues to be above desired levels.

The Federal Open Market Committee (FOMC) aims for maximum employment and inflation at a 2 percent rate over time. The committee noted ongoing uncertainty about the economic outlook and increased risks to employment.

To address these changes, the FOMC decided to lower the target range for the federal funds rate by a quarter percentage point, setting it at 4 to 4-1/4 percent. The committee stated, "In considering additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective."

The committee emphasized ongoing monitoring of new information affecting economic prospects: "In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals. The Committee's assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments."

Committee members Jerome H. Powell (Chair), John C. Williams (Vice Chair), Michael S. Barr, Michelle W. Bowman, Susan M. Collins, Lisa D. Cook, Austan D. Goolsbee, Philip N. Jefferson, Alberto G. Musalem, Jeffrey R. Schmid, and Christopher J. Waller voted in favor of this policy action. Stephen I. Miran voted against it, preferring a larger cut of half a percentage point.

For further information or media inquiries regarding this decision or related matters, contact details are provided by the Federal Reserve.