The Federal Reserve's monetary policy committee on Wednesday lowered its benchmark lending rate by 25 basis points, marking a third straight cut since the central bank pivoted to policy easing in September. The Federal Open Market Committee reduced interest rates to a range of 4.25% to 4.50% from 4.50% to 4.75%, in line with Wall Street's expectations.
Policymakers cut rates by 50 basis points in September and by 25 basis points last month. The FOMC on Wednesday reiterated that although inflation has made progress toward its 2% target, it remains "somewhat" elevated. Economic activity has continued to expand at a "solid" rate, while labor market conditions have "generally eased" since earlier in the year, the committee said in a statement following its two-day meeting.
The unemployment rate has edged higher but remains low. "In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the committee will carefully assess incoming data, the evolving outlook, and the balance of risks," the FOMC said. Official US data released last week showed that monthly consumer inflation accelerated in line with market estimates in November, while producer prices rose more than expected. The next FOMC meeting is scheduled for Jan.
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