Fed Cuts Interest Rates—What This Means for Your Money

The Federal Reserve followed through on its first interest rate cut of the year, moving ahead with a modest quarter percentage point reduction to the benchmark federal funds rate.

Monetary policymakers voted 11—1 on Sept. 17 to lower the key policy rate to a target range of 4 percent to 4.25 percent after holding rates steady since January. Newly confirmed Fed board member Stephen Miran was the lone no vote, preferring a half-point cut.