The Federal Reserve Lowers Interest Rates for the Second Consecutive Time, Emphasizing Labor Market Stability and Slowing Inflation

The U.S. Federal Reserve’s Monetary Policy Committee, after its meeting on Thursday, decided to reduce U.S. interest rates by 25 basis points, bringing the upper limit of the federal funds rate to 4.75%, in line with market expectations.

Content

Details
Key Points

Details

This is the second consecutive rate cut following the decision in the September meeting,
as the Fed aims to support the economy amid declining inflation and a slight rise in unemployment.

In its monetary policy statement, the committee affirmed that economic activity continues to expand and that the labor market has improved compared to the beginning of the year.
However, inflation remains slightly above the 2% target.
The committee also expressed a balanced view of economic risks and stressed the importance of monitoring economic data to adjust the course of monetary policy.

Key Points

of the Monetary Policy Statement:

Economic activity continued to expand with improvements in the labor market.
Inflation is progressing toward the target but remains relatively high.
The Federal Reserve lowered the interest rate to a range of 4.5% – 4.75%.
Future interest rate decisions will depend on economic data and risk balance.

The Federal Reserve reaffirmed its commitment to guiding its monetary policy to support full employment and bring inflation back to its 2% target, while monitoring both domestic and international economic conditions. The Fed also indicated it would adjust its policies if risks emerge that threaten the achievement of its goals.

The Federal Reserve Lowers Interest Rates for the Second Consecutive Time

The Federal Reserve Lowers Interest Rates

Related Topics