The Federal Reserve has announced that it’s lowering its benchmark interest rate by a quarter point but provided no clear outlook for its next decision, expected in December.
In a 10-2 vote, the central bank’s Federal Open Market Committee reduced its benchmark overnight borrowing rate to a range of 3.75%-4%.
It also said it will restart limited purchases of Treasury securities, as money markets are showing signs that liquidity is becoming tight, a situation it has pledged to prevent.
The Fed also announced that it will end the reduction of its asset purchases, known as quantitative tightening, on December 1.
“A further reduction in the policy rate at the December meeting is not a foregone conclusion. Far from it. Policy is not on a preset course,” Fed Chair Jerome Powell said.
Powell added, “We haven’t made a decision about December, and you know, we’re going to be looking at the data we have, how that affects the outlook, and the balance of risks.”
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US Fed Cuts Interest Rates To Lowest Level In 3 Years…
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