Federal Reserve meeting

U.S. President Harry Truman once quipped that he would really like to find an economist with only one hand. He went on to elaborate: “Give me a one-handed economist. All my economists say 'on one hand...' then 'but on the other...'” That statement bears on the Dec. 9-10 meetings of the Federal Open Market Committee of the Federal Reserve Board. At the session, the federal funds interest rate were cut by 25 basis points, or 0.25 percent, to a target range of 3.50 percent to 3.75 percent. It is the lowest level since 2022, when the economy was overall more troubled than today. Fed meetings rightly are held in private, but reliable information including public statements by Fed governors indicate that this time around, there was a comparatively large amount of dissent, including some supporting holding steady with no changes, and others backing a greater reduction. Available data indicate softness in employment, signaling a slowdown with growing numbers of idle people who want to work, but inflation remains vexing. Inflation concerns normally would argue for not cutting rates, which cu