Federal Reserve Cuts Fed Funds Rate by 25 Basis Points
By Tom Burnett CFA
On November 7, 2024, the Federal Open Market Committee issued its formal statement cutting the Fed Funds rate by one quarter of a point. The new range is now 4.50-75%. The statement noted that the decision was unanimous among all 12 voting members. The FOMC also indicated that it will continue to shrink the Fed’s balance sheet by reducing its holdings of Treasury securities by $25 billion a month. It will also reduce its holdings of Mortgage-backed securities by $35 billion per month. The latest Fed balance sheet report (H.4.1 October 31. 2024) shows total assets of $7.0 trillion, down from a total figure of $8.6 trillion two years ago.
The next FOMC meeting is scheduled for December 18, 2024.
Tom Burnett CFA is Director of Research