US Federal Reserve lowers interest rate by 25 basis points

By Gokhan Ergocun

ISTANBUL (AA) — The US Federal Reserve on Thursday reduced interest rates by 25 basis points to the range of 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 market expectations.

The Federal Open Market Committee (FOMC) stated: "Recent indicators suggest that economic activity has continued to expand at a solid pace.

"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"