Federal Reserve lowers interest rates by 0.25%
Date
11/11/2024 1:18:33 AM
(MENAFN) The Federal Reserve declared on Thursday its second sequential interest ratio cut, reducing the benchmark ratio by 25 units amid economic data displaying marks that inflation and the labor market are beginning to slowdown.
With the 25-basis-units cut, the benchmark federal funds volume will remain between 4.5 percent to 4.75 percent. The Fed’s move follows a higher-than-average cut of 50 units during its September meeting, which was considered the initial ratio cut since March 2020 and took ratio down from an average of 5.25 percent to 5.5 percent, which is the largest level since 2001.
"Labor market conditions have generally eased, and the unemployment rate has moved up but remains low. Inflation has made progress toward the Committee's 2 percent objective but remains elevated," pointed out the Federal Open Market Committee (FOMC) and the Fed’s lawmaking arm.
Lawmakers stated in the declaration that they’re “attentive to the risks to both sides of its dual mandate," which is to support maximum employment and steady prices. All FOMC associates voted in favor of the ratio cut.
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