Federal Reserve cuts interest rates by 25 basis points

The Federal Reserve cut interest rates by a quarter percentage point, avoiding any surprises just days after the election of Donald Trump as president.

The central bank voted unanimously Thursday to cut its benchmark rate by 25 basis points to a new range of 4.5%-4.75%, making the decision at the conclusion of its two-day policy meeting in Washington, D.C.

The move marks the second rate cut in seven weeks, following a jumbo half percentage point reduction in September that kicked off the Fed’s first easing cycle in more than four years.

This new cut was justified, according to the Fed’s Federal Open Market Committee, as a way of supporting its dual mandate to maintain stable prices and maximize employment.

 

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