The US Federal Reserve shrugged off political uncertainty in Washington and moved ahead with a quarter-point rate cut on Thursday, easing monetary policy further as inflation continues to cool.
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Policymakers voted unanimously to lower the central bank’s key lending rate to between 4.50 per cent and 4.75 per cent, the Fed said in a statement.
“Labour market conditions have generally eased” since earlier in the year, the Fed said, noting continuing progress to bring inflation down towards the bank’s long-term target of two per cent.
The rate cut builds on the Fed’s action in September, when it kicked off its easing cycle with a large reduction of half a percentage-point, and pencilled in additional cuts for this year.
The Fed’s favoured inflation gauge eased to 2.1 per cent in September, while economic growth has remained robust.
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