Washington: The US Federal Reserve (central bank) Wednesday lowered interest rates by 25 basis points, bringing the target range to between 4.00% and 4.25%, marking the first rate cut of the year.
In a statement, the Fed explained that the decision was made in light of a slowing labor market and economic risks facing the US economy, while also indicating the possibility of two additional rate cuts before the end of the year.
A majority of the Fed’s members voted in favor of the decision.
The statement also pointed to expectations of a further 50 basis point reduction by year-end, followed by an additional 25 basis point cut in each of the next two years.
