The Federal Reserve approved a quarter-point interest-rate cut Thursday, the latest step to prevent large rate increases of the prior 2½ years from weakening the labor market as inflation eases, The Wall Street Journal reports.
The decision follows the initial cut of a half-point in September and will bring the benchmark federal-funds rate to a range between 4.5% and 4.75%. The dozen Fed voters unanimously backed the cut.
Officials have maintained that the cuts are warranted, saying that inflation will return to the central bank’s target and because they believe rates are still high enough, even with the latest cuts, to dampen economic activity.
The move was expected and stocks and Treasury yields remained steady after the announcement.
