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The Fed lowered rates by 25 basis points amid division, as inflation and unemployment remain above target.
In a 9-3 vote that revealed intense internal division, the Federal Reserve lowered its key interest rate by 25 basis points to 3.6% in December, the lowest level in almost three years.
Due to delayed economic data from a six-week government shutdown, some officials supported the move with reservations, while two officials wanted to keep rates unchanged and one supported a larger half-point cut.
Even though November's inflation rate dropped to 2.7%, it is still higher than the Fed's 2% target, and job losses in October and November caused unemployment to reach 4.6%, the highest level in four years.
There is still disagreement among officials regarding future cuts; estimates range from no cuts to two or more in 2026.
The Fed's next meeting is set for January 27–28, and it stressed a data-dependent approach.
La Fed bajó las tasas en 25 puntos básicos en medio de la división, ya que la inflación y el desempleo siguen por encima del objetivo.