Federal Open Market Committee cuts interest rate a quarter of a point

In a move that should provide some relief to farm borrowers, the Federal Open Market Committee, a part of the Federal Reserve System, today cut the target range for the federal funds rate by a quarter of a percentage point, to 4%-4.25%.

In a statement, the Fed said, “Recent indicators suggest that growth of economic activity moderated in the first half of the year. Job gains have slowed, and the unemployment rate has edged up but remains low. Inflation has moved up and remains somewhat elevated.”

In an analysis, Axios said, “With President Trump clamoring for cheaper money, policymakers delivered the first rate cut of the year. But new projections showed little appetite for the deeper rate cuts the president seeks.”