The Federal Reserve (Fed), the central bank of the United States, reduced the interest rate by 0.25 percentage points, moving to the range between 3.75% and 4% per year. The measure marks the second drop in 2025.
According to the Fed, the American economy is growing at a moderate pace and inflation remains above the 2% target. Even with the slight increase in unemployment, the agency assesses that the job market remains strong.
The cut was expected by the financial market, especially after the entry of new director Stephen Miran, appointed by President Donald Trump. He had defended a larger reduction, of 0.5 percentage points, which increased bets that another cut could occur at the December meeting.
In the official statement, the Fed explained that the decision seeks to balance inflation control with job creation. The bank also said that uncertainty about the future of the economy is still high, and that it will continue to evaluate upcoming data before making new decisions.
Furthermore, the Fed reported that it will end the reduction of its investments in bonds as of December 1st, which should help maintain stability in the financial system.
