The Board Federal Reserve The U.S. cut interest rates by 0.25%, to within a range of 3.75% to 4%. The move is part of efforts to boost the labor market, especially given signs of slowing economic growth and rising inflation over the past year.
In its statement issued after the Open Market Committee meeting, the Fed noted that U.S. economic activity is slowly expanding, with a slowdown in job growth observed this year. However, the unemployment rate remains at relatively low levels through August.
Recent Statements
The Committee stressed that the recent data reflect this trend, where the inflation rate increased compared to the beginning of the year and remains at relatively high limits.
The committee is also seeking to maximise employment while keeping inflation stable at 2 percent over the long term, but warned of growing uncertainty about the economic outlook, noting that employment-related risks have increased in recent months.
Inflation Control
Based on these developments, the Committee decided to end its securities holdings reduction program from December 1, while reiterating its firm commitment to supporting full employment and seeking to return inflation to its target level.
The Committee also confirmed that it will continue to follow the economic data closely, and will be ready to adjust its monetary policy if risks to the goals set appear.
The vote on the resolution was supported by 10 members led by Federal President Jerome Powell and his deputy John C. Williams, while two members voted against the resolution, where proposed by Stephen A. Miran cut the interest rate by half a percentage point, while Jeffrey R. Schmid saw the need to keep the interest rate unchanged.
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