The US Federal Reserve reduced the federal funds rate by 25 basis points (0.25 percentage point), citing rising downside risks to employment and a moderate pace of economic expansion.

The decision was announced after the Jerome Powell-led Federal Open Market Committee (FOMC) concluded its meeting on Wednesday.

The new target range now stands between 3.5 per cent and 3.75 per cent, down from 3.75 per cent to 4 per cent.

In an official statement, the Fed said that available indicators suggest economic activity has been expanding at a moderate pace.

It stated, “Job gains have slowed this year, and the unemployment rate has edged up through September. More recent indicators are consistent with these developments”.

The Fed added that inflation has increased since earlier in the year and re

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