The U.S. Federal Open Market Committee (FOMC) cut interest rates by an additional 25 basis points at its Nov. 7 meeting, providing it with flexibility as the labor market cools amid lower inflation, according to Barrons. After this rate cut and the Fed’s more aggressive 50 basis point rate cut in September, the federal funds rate now sits at 4.50 percent to 4.75 percent.
“Recent indicators suggest that economic activity has continued to expand at a solid pace,” reads a statement from the FOMC. “Since earlier in the year, labor market conditions have generally eased, and the unemployment rate has moved up but remains low. Inflation has made progress toward the committee’s 2 percent objective but remains somewhat elevated.
“The committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. The committee judges that the risks to achieving its employment and inflation goals are roughly in balance. The economic outlook
