Following the results of the next meeting, the US Federal Reserve System (FRS) lowered the base interest rate by 25 basis points, to a range of 4.5-4.75%. This is the second rate cut this year, and the decision was made unanimously by all members of the Open Market Committee (FOMC). Highlights: The economy continues to grow at a steady pace, despite signs of a slowdown in certain sectors. Inflation is moving towards the 2% target, but still remains slightly above the desired level. The labor market has weakened, but the unemployment rate remains at historically low levels, which supports economic activity. The Fed emphasizes that the goals for maximum employment and inflation remain unchanged, while the risks to the economy are balanced. Expectations and plans: The Committee is ready to continue to adjust policy in case of new risks that may hinder the achievement of long-term inflation and employment targets. The next meeting is scheduled for December 17-18, 2024, when updated macro forecasts will be presented. The rate cut is an attempt to stimulate economic activity in the face of slowing growth and a desire to keep inflation under control. From July 2023 to September 2024, the Fed kept the rate at the highest level in the last 20 years at 5.25-5.5%, but now, apparently, it is ready for a more flexible approach.
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