The U.S. Federal Reserve (Fed) decided on Wednesday to reduce its target range for the federal funds interest rate by 25 basis points, setting it between 3.5% and 3.75%. This marks the third rate cut of the year, according to the Argentine News Agency (NA).
The announcement was made by Fed Chairman Jerome Powell during a press conference in Washington, D.C. He stated that the decision is aimed at "maintaining economic stability in a context of moderate slowdown." Powell explained that the rate cut is based on a joint assessment of labor market conditions, household spending, business investment, and the recent behavior of inflation, which continues to moderate but remains above the Fed's target.
According to the official statement, the Fed will continue to monitor the evolution of the labor market, inflation, and global risks before defining its next steps in monetary policy.
The announced rate cut brought calm to financial markets, which were expecting a signal of continuity in the easing cycle initiated this year.
"The Fed seeks to support economic activity without pressuring inflation," Powell affirmed.
