The Federal Reserve on Wednesday announced its second consecutive interest rate cut, bringing the benchmark interest rate to the lowest it’s been in three years.

The quarter-point rate cut passed in a 10-2 vote, taking the rate down to a range of 3.75% to 4%, which is the lowest it has been since late 2022.

Following the interest rate cut, U.S. stocks were higher Wednesday afternoon.

According to CNN, the Dow was up 0.25%, the S&P 500 was up 0.15% and Nasdaq was up 0.5%.

This is the second time the Federal Reserve has lowered the rate this year, after it was cut in September. Fed Chair Jerome Powell said in a news conference on Wednesday that it is not guaranteed there will be another rate cut at the next meeting in December.

How this will impact the rates people see

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