The Federal Reserve's monetary policy committee announced a reduction in its benchmark lending rate by 25 basis points during a meeting on Thursday. This move follows a previous cut of 50 basis points in September and adjusts the interest rates to a range between 4.50% and 4.75%, as reflected in differences noted in a Bloomberg-compiled consensus. The Federal Open Market Committee (FOMC) noted, "Since earlier in the year, labor market conditions have generally eased, and the unemployment rate has moved up but remains low." They acknowledged progress towards their inflation target of 2%, yet indicated that inflation levels continue to be "somewhat elevated." Recent official data unveiled that US consumer inflation escalated at a more-than-expected rate in September, which caused concern amongst policymakers.

Furthermore, Bureau of Labor Statistics reports revealed that job creation in the US significantly lagged behind Wall Street's projections in October, influenced by a strike at Boeing and potential disruptions caused by hurricanes. The Boeing strike, which lasted for over seven weeks, concluded earlier this week. The committee stated, "The risks to achieving its employment and inflation goals are roughly in balance." In evaluating the potential for further adjustments to the federal funds rate's target range, the committee emphasized the importance of closely monitoring incoming data, the evolving economic outlook, and the associated risks, reaffirming messages they shared in September. The next FOMC meeting is set for December 17-18, where they will continue to assess various economic indicators amid adjusting conditions and concerns..