# Fed Makes Third Rate Cut of 2023, Signals Cautious Approach Ahead
In this episode, we dive into the Federal Reserve's latest decision to cut interest rates by 0.25 percentage points, bringing the federal funds target range down to 3.50-3.75% - the lowest level since late 2022. Chair Powell described this as a "neutral" stance as the Fed balances cooling inflation without harming employment.
Despite multiple dissenting votes from inflation hawks, the Fed has nudged up their growth outlook, projecting GDP to rise 1.7% next year and 2.3% in 2026. Meanwhile, they don't expect inflation to fully return to their 2% target until around 2028.
For consumers and businesses, this rate cut offers modest relief on mortgages, credit cards, and business loans. However, Powell's careful language about the "extent and timing" of future
This content was created in partnership and with the help of Artificial Intelligence AI
