(Reuters) – The US Federal Reserve on Thursday lowered the Fed Funds rate target by 25 basis points to 4.50%-4.75%, a level in line with that expected by economists and markets.
“Economic activity continues to grow at a solid pace,” the US central bank said in its statement released at the end of its two-day monetary policy meeting.
The institution reiterated that the risks to inflation and job markets were “roughly balanced”, a comment already made during its September meeting at the end of which the Fed had lowered its rates by 50 basis points.
Despite an unemployment rate that remains low, “conditions on the labor market have generally relaxed,” noted the Fed.
The decision to lower rates was taken unanimously, the central bank said.
Fed Chairman Jerome Powell is due to comment on this decision during a press conference scheduled for 7:30 p.m. GMT.
This is the second consecutive rate cut by the Fed.
Economists polled by Reuters overwhelmingly estimated that the central bank would cut rates by 25 basis points during this November meeting, with money markets betting on an easing of the same magnitude.
(Howard Schneider, written by Corentin Chappron)
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