Divided Fed cuts rates, signals pause as growth rebounds

WASHINGTON >> The Federal Reserve cut interest rates today in another divided vote, but signaled it will likely pause further reductions in borrowing costs as officials look for clearer signals about the direction of the job market and inflation that “remains somewhat elevated.”

New projections issued after the U.S. central bank’s two-day meeting showed the median policymaker sees just one 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 next year, even as economic growth accelerates to an above-trend 2.3% and the unemployment rate remains at a moderate 4.4%.

“In considering the extent and timing of additional adjustments to the target range for the federal funds rates, the Committee will carefully assess