The Federal Reserve kept its monetary policy on an expected path by delivering another interest rate cut following the conclusion of this week’s two-day meeting. The Fed announced its Federal Open Market Committee (FOMC) has unanimously agreed to slash the borrowing rate by 25 basis points.
The quarter percentage point cut brings the Fed’s benchmark rate in the range of 4.50% to 4.75%. The move follows a 50 basis points deduction from September.
According to Fed Chairman Jerome Powell, policymakers will continue to monitor the economic data in order to determine future moves. However, he reiterated that he is content with the way the U.S. economy is looking at the moment.
“This further recalibration of our policy stance will help maintain the strength of the economy and the labor market and will continue to enable further progress on inflation as we move toward a more neutral stance over time,” Fed chairman Jerome Powell said. “We think that the economy, and we think our policies, are both in a very good place, a very good place.”
Economists have mostly expected the Fed to further slash the interest rate at their latest meeting despite the aggressive move in September. They also predict that another cut will be made in December before a likely pause in January to get a better sense of the economic landscape.