This marks the second rate cut in four years, following a more significant 50-basis-point reduction in September.

The Federal Open Market Committee (FOMC) cited recent economic indicators suggesting sustained growth and a softening labor market. While acknowledging progress in reducing inflation, the committee noted that price levels remain elevated.

The rate cut aims to stimulate economic activity and mitigate the impact of potential economic slowdown. However, the Fed remains cautious about the inflationary pressures and will continue to monitor economic conditions closely. (ILKHA)