Fed Eases Policy: Rate Cut Signals Cautious Economic Support

The US Federal Reserve has slashed its policy interest rate by 25 basis points to support economic stability amid uncertainties. The move aligns with the Fed's long-term inflation goals and emphasizes a balanced approach to employment and inflation. The committee remains vigilant of evolving economic conditions and potential risks.

In a strategic move, the US Federal Reserve has reduced its policy interest rate by 25 basis points, marking a push towards monetary easing to bolster economic stability. This decision sets the federal funds rate target in the bracket of 4.5 to 4.75 percent.

Federal Reserve Chair Jerome Powell emphasized the Fed's focus on sustainable economic growth and aligning inflation with the long-term target of 2 percent. Powell stated, "Today the FOMC decided to take another step in reducing the degree of policy restrained by lowering our policy interest rate by a quarter percentage point."

Despite a slight increase in unemployment, the job market remains robust. However, inflation hasn't reached the desired target, illustrating a nuanced monetary policy approach. The Fed remains committed to achieving maximum employment and stable inflation goals, while preparing for possible adjustments based on economic indicators and risks.

(With inputs from agencies.)