Divided Fed cuts rates, signals pause, one cut in 2026 as growth recovers
Fed cuts rates in split vote, but signals pause as inflation remains elevated, labor market uncertain The U.S. Federal Reserve cut interest rates on Wednesday in another divided vote but indicated it would likely hold off on further cuts in borrowing costs as the U.S. central bank seeks clearer signals on the direction of the labor market and inflation that “remains somewhat elevated.” New forecasts issued after the Fed’s two-day meeting showed the median policymaker sees only a quarter-percentage-point cut in 2026, the same outlook as in September, with inflation expected to slow to around 2.4% by the end of
