US Federal Reserve cuts interest rate for third time this year

WASHINGTON, The US Federal Reserve cut on Wednesday its interest rate for the third time this year by a quarter of a percentage point to a range of 1.5 to 1.75 percent.

The Federal Reserve said in a statement that “in light of the implications of global developments for the economic outlook as well as muted inflation pressures,” it has decided to lower the target range for the federal funds rate to 1.5 to 1.75 percent.

“This action supports the Committee’s (Federal Open Market Committee) view that sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee’s symmetric two percent objective are the most likely outcomes, but uncertainties about this outlook remain,” the statement stressed.

“The Committee will continue to monitor the implications of incoming information for the economic outlook as it assesses the appropriate path of the target range for the federal funds rate,” it noted.

It added that the Committee “will continue to monitor the implications of incoming information for the economic outlook as it assesses the appropriate path of the target range for the federal funds rate.” In July, the Federal Reserve first cut its interest rate by a quarter point for the first time since December 2008, then cut it again by a quarter point in September. Today’s cut comes amid reports that there will be a pause in rate reductions in the future.

Source: Kuwait News Agency