Yesterday, Fed officials lowered interest rates by a quarter-point, roughly in line with people's expectations. "The decision to cut for a third meeting in a row shifted interest rates to a new range of 3.5 percent to 3.75 percent," reports The New York Times. "It marked the fourth straight vote that was not backed by all members of the 12-person Federal Open Market Committee, demonstrating how fractured the central bank has become as it balances risks of rising unemployment and sticky inflation."

The rate cut was controversial among members of the Federal Reserve Board, who voted 9–3 in favor. (Two regional Fed presidents voted to leave rates unchanged and one board member opted for a larger cut.) The labor market keeps weakening, but inflation remains above the target. Board members are

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