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The Fed was widely expected to trim the benchmark lending rates, as inflation cooled in recent months.
29 Oct 2025, 11:45 PM IST i 29 Oct 2025, 11:31 PM IST 29 Oct 2025, 11:45 PM IST
The Jerome Powell-led US Federal Reserve announced its second rate cut of 2025. (Photo: NDTV Profit)
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The US Federal Reserve on Wednesday announced a quarter-of-a-percentage point of rate cut, as it pointed towards the sluggish growth in jobs and uptick in unemployment.
The 25-basis point reduction has trimmed the overnight lending rates to a range of 3.75–4%, as against the prevailing 4–4.25%. This was in line with the expectations, as the CME Fed Watch had projected a 97.2% probability of quarter point rate cut.
"Job gains have slowed this year, and the unemployment rate has edged up but remained low through August; more recent indicators are consistent with these developments," stated a release issued at the conclusion of the two-day Federal Open Market Committee (FOMC) meeting.
Notably, the unemployment data for September was not released as the US government is facing a shutdown since the start of this month, which has led to around 750,000 workers being furloughed.
(This is a developing story)
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