The US Federal Reserve, the country’s main financial regulator, has lowered its benchmark interest rate by 25 basis points following its September 16–17 meeting. The rate now stands at a range of 4–4.25% per year, according to the central bank’s official statement.
This marks the first change since five consecutive meetings where the rate was held steady at 4.25–4.5%. The next policy review is scheduled for October 28–29.
In its press release, the Fed noted that economic growth slowed sharply in the first half of the year. Job creation has become less robust, and unemployment has inched higher, though it remains relatively low. At the same time, inflation has accelerated and continues to exceed the target level. The central bank also highlighted a growing risk of labour market weakness.
The Fed reaffirmed its commitment to returning inflation to 2% while maintaining the highest possible level of employment. Future decisions, it added, will depend on the latest economic data.
Kursiv also reports that gold reached a new record on September 16, supported by a softer dollar ahead of the US Federal Reserve’s policy meeting.
