Fed cuts rates by 25bp, as expected

(Sharecast News) - Rate-setters in the US decided on Thursday to ease monetary policy further. On this occasion, the Federal Open Market Committee's policy statement no longer stated that policymakers had gained more confidence that inflation was falling back towards 2% sustainably, although it did say again that "progress has been made toward the Committee's 2 percent objective".

However, the decision to reduce the target range for the Fed funds rate by 25 basis points to 4.5-4.75% was unanimous, unlike in September, when governor Michelle Bowman voted for a 25bp reduction, instead of 50bp like everyone else on the FOMC.

The FOMC did reiterate that inflation remained "somewhat elevated", that the risks to its dual objectives of full employment and stable prices were "roughly in balance" and that the economic outlook was uncertain.

As of 1926 BST US stocks were holding near their session highs ahead of the start of Fed chief Jerome's Powell's press conference.