The most divided Fed since before the pandemic voted to lower the benchmark rate by 25 basis points as investors expected, but there were three dissents for the first time since 2019.

Next year's dot plot suggests just one cut coming. Seven members want no move, however, including three who think the rate might go up.

The committee statement says economic activity has been expanding at a moderate pace and the latest forecast show a consensus GDP figure of 1.7% for this year. But in a big move up, they have revised growth forecast for 2026 to 2.3%.

Unemployment forecast to finish this year at 4.5% will fall back to 4.4% next year using identical language from October the statement says job gains have slowed this year and the unemployment rate has edged up through September.

There's no change in the inflation assessment. It has moved up since earlier in the year and remains somewhat elevated. However, it is seen slowing markedly next year.

As for the balance sheet, the statement now says, reserve balances have declined to ample levels. The Fed will buy shorter-term treasuries, mostly bills, but up to 3 year notes, as needed to maintain that ample supply.