British News Agency

The Fed stated that current indicators show economic activity continues to expand at a moderate pace.

The statement noted that job growth has slowed this year, and while the unemployment rate remained low through August, it has edged up slightly. More recent indicators confirm this trend.

Inflation has risen since the beginning of the year and remains somewhat elevated, the statement said:

“The Committee seeks to achieve maximum employment and inflation at the rate of 2% over the longer run. Uncertainty regarding the economic outlook remains elevated. The Committee carefully assesses risks to both sides of its dual mandate and notes that downside risks to employment have increased in recent months.

In light of the shift in the balance of risks, the Committee decided to lower the target range for the federal funds rate by 25 basis points to 3.75%–4%. When assessing future adjustments, the Committee will carefully consider incoming data, evolving economic conditions, and the balance of risks. The Committee also decided to conclude the securities asset reduction process by December 1. The Committee remains strongly committed to supporting maximum employment and returning inflation to its 2% target.

In evaluating the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook and stands ready to adjust policy as appropriate if risks emerge that could impede the attainment of its goals.”