Washington, November 7th (Xinhua) -- The Federal Reserve announced a 25 basis point interest rate cut to 4.50% -4.75% on the 7th, the second time since September that it has cut interest rates, in line with market expectations.
The Federal Reserve statement stated that the US economy continues to expand steadily, labor market conditions have eased somewhat, unemployment rates have risen but remain low, and inflation rates have made progress but remain high. Balancing the risks of achieving employment and inflation targets, but there is uncertainty in the economic outlook.
The Federal Reserve will continue to evaluate future data, economic prospects, and risk balance, and will continue to reduce its holdings of related bonds. Federal Reserve Chairman Powell stated that this policy adjustment will help maintain a strong economy and labor market, and monetary policy will gradually move towards neutrality.
This is the first time since March 2020 that the Federal Reserve has cut interest rates, with the aim of balancing economic growth and inflationary pressures.