British News Agency

In the Fed’s statement, it was noted that current indicators point to economic activity continuing to expand at a moderate pace.

The statement pointed out that employment gains have slowed this year, while the unemployment rate gradually increased through September, and that more recent data are consistent with these developments.

It was also stated that inflation has risen compared with the beginning of the year and remains somewhat elevated.

“The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty regarding the economic outlook remains elevated. The Committee is carefully assessing risks to both sides of its dual mandate and judges that downside risks in the labor market have increased in recent months.”

The statement added that to support its goals and to take into account the shift in the balance of risks, the Committee has decided to lower the target range for the federal funds rate by 25 basis points to 3.5–3.75 percent.

“In evaluating the extent and timing of further adjustments to the target range, the Committee will carefully monitor incoming data, developments in the economic outlook, and the balance of risks. The Committee remains strongly committed to promoting maximum employment and returning inflation to its 2 percent objective.”

The statement continued: “In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee is prepared to adjust the stance of monetary policy as appropriate should risks emerge that could impede the attainment of its goals. A wide range of information will be considered, including labor market conditions, inflation pressures and expectations, and financial and international developments.”