The Jerome Powell-led US Federal Reserve’s Federal Open Market Committee (FOMC) on Wednesday cut its benchmark interest rate by 25 basis points, bringing it down to a range of 3.50% to 3.75%, even as inflation remains elevated across the economy.

“In support of its goals, and given the shift in the balance of risks, the Committee has decided to lower the target range for the federal funds rate by one-quarter percentage point to 3½ to 3¾ percent,” the FOMC said in its official statement.

The US Federal Reserve’s Federal Open Market Committee (FOMC) also acknowledged growing risks on both sides of its dual mandate price stability and employment.

In its latest policy statement, the Fed noted that downside risks to the labour market have increased in recent months, even as inflation remains

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