In the second consecutive decrease of interest rates the Federal Reserve Bank of the United States (Fed) to support the weakened labor market, and officials said they would stop reducing the central bank’s asset portfolio on Dec. 1.
In a post-meeting statement, Fed policymakers reiterated their assessment that “job growth has slowed” and said “risks to employment have increased in recent months.” Interest rates were cut by 25 basis points to a range of 3.75% to 4%.
Officials described economic growth as “moderate” and said inflation “has increased since the beginning of the year and remains at relatively high levels.”
Governor Stephen Miran, who joined the central bank last month and is on unpaid leave as chairman of the White House Council of Economic Advisers, again dissented in favor of a larger half-point cut. Kansas City Fed President Jeff Schmid said he preferred not to cut interest rates at all, after having backed a rate cut last month.