Federal Reserve Adjusts Interest Rates Amid Economic Expansion

According to Odaily, the Federal Reserve's recent policy statement indicates that economic activity continues to expand robustly. Throughout this year, the labor market has shown signs of easing, with the unemployment rate rising slightly but remaining low. Inflation is gradually approaching the committee's 2% target, although it still slightly exceeds this level. The committee aims to achieve maximum employment and a long-term inflation rate of 2%. It assesses that the risks to achieving these employment and inflation goals are broadly balanced. However, uncertainty about the economic outlook persists, prompting the committee to closely monitor risks related to its dual mandate. To support its objectives, the committee has decided to lower the target range for the federal funds rate by 25 basis points to between 4.5% and 4.75%. When considering further adjustments to the federal funds rate target range, the committee will carefully evaluate new data, changes in the economic outlook, and the balance of risks. Additionally, the committee will continue to reduce its holdings of Treasury securities, agency debt, and agency mortgage-backed securities. The committee remains firmly committed to supporting maximum employment and restoring inflation to the 2% target.