UPDATE - US Federal Reserve lowers interest rate by 25 basis points

​​​​​​​ADDS FED CHAIR’S COMMENTS, REVISES DECK, EDITS THROUGHOUT

By Gokhan Ergocun

ISTANBUL (AA) - The US Federal Reserve reduced interest rates Thursday by 25 basis points to the range of between 4.5% - 4.75%.

The move was the second rate cut by the central bank in four years, since the beginning of the coronavirus pandemic.

In September, the bank lowered rates by 50 basis points, exceeding expectations.

"Recent indicators suggest that economic activity has continued to expand at a solid pace,” the Federal Open Market Committee (FOMC) said in a statement. "Since earlier in the year, 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 somewhat elevated"

Fed Chair Jerome Powell said at a news conference after the decision that the US elections would have no effects on the Fed's policy decisions in the near term.

Donald Trump defeated Kamala Harris for the US presidency earlier this week.

"We don't know that what the timing and substance of any policy changes," he said, adding the Fed does not know what effects on the economy potential policy changes would bring.

"We don't guess, we don't speculate, and we don't assume," he added.

Powell said he would not resign if Trump asked for his resignation.