The U.S. central bank reduced its federal funds rate target for a third time, while launching a $40 billion short-term Treasury purchase program.
The Federal Reserve lowered its target range for the federal funds rate by 25 basis points to 3.50%-3.75%, marking a third consecutive cut. Three members opposed the move, creating the largest division in the policymaking body in 37 years, and signaled a higher threshold for future rate cuts. The Fed also introduced a $40 billion short-term Treasury purchase program.