The September FOMC meeting did not disappoint. As was widely expected, the FOMC lowered the fed funds rate by 25 bps to 4.00%-4.25%. The move marked the first adjustment to the Committee's policy rate since December and reflected a shifting balance of risk between the FOMC's mandates of full employment and inflation. With the core PCE deflator running about a percentage point above target (Figure 1), the post-meeting statement maintained that inflation "remains somewhat elevated" and acknowledged that it has "moved up." However, the recent deterioration in the jobs market overshadowed concerns about stubborn ... (full story)