Fed Cuts Rates for Second Straight Meeting

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00:00With that Fed decision, here's Mike McKee.

00:03A divided Fed cuts their benchmark lending rate by a quarter percentage point and says

00:09they are going to end QT December 1st. There are two descents as policymakers reset the target

00:16range to three and three quarters and four percent. No surprise, Stephen Myron descents

00:21in favor of a 50 basis point cut as President Trump wants. And Kansas City Fed President

00:27Jeffrey Schmidt descents on the other side in favor of no move. The Fed's administered rates for

00:34interest on reserves and the primary credit rate mechanically decreased by a quarter percentage

00:39point along with the Fed fund's target. As for the balance sheet, the Fed will stop redeeming

00:45maturing treasury securities at the end of November. Principal payments will be rolled over going

00:51forward. The mortgage cap of $35 billion a month remains in place, but as of December 1st,

00:58all principal payments on maturing agencies will be reinvested in treasury bills. Fed officials gave

01:05a nod to the government shutdown in their economic assessment, noting that, quote,

01:10available indicators suggest that economic activity has been expanding at a moderate pace.

01:15Job gains have slowed this year, the statement says, and the unemployment rate has edged up but

01:22remained low through August. More recent indicators are consistent with these developments. They changed

01:28the tense on the balance of risks, noting downside risks to employment rose in recent months instead

01:35of have risen. An uncertainty about the economic outlook remains elevated, they say. There is no change

01:42to their forward guidance. The statement still says in considering additional adjustments to the target

01:48rate, they will consider many factors. Guys?