The Board of Governors of the Federal Reserve System has reduced its target lending rate by one-quarter of a percentage point for the second time this year, with a third cut planned for December, Chairman Jerome Powell announced.

The board voted 10-2 to reduce the target rate to a range of 3.75% to 4% after reducing it to 4% to 4.25% last month. The two dissenting governors were Jeffrey Schmid, a Biden administration appointee who voted against any change, and Stephen Miran, who has twice voted for a half-point cut since being appointed by President Donald Trump shortly prior to the September meeting.

In a release announcing the decision, the board pointed to a “moderate” expansion of economic activity and its dual mandate of minimum unemployment and a long term inflation rate of 2%.

“Job gains have slowed this year, and the unemployment rate has edged up but remained low through August; more recent indicators are consistent with these developments,” the release states. “Inflation has moved up since earlier in the year and remains somewhat elevated.”

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