The United States Federal Reserve has announced a 25 basis point reduction in its policy interest rate, marking a continued shift towards a more accommodative monetary policy stance aimed at supporting economic stability.

The Federal Open Market Committee (FOMC) lowered the federal funds rate target to a range of 4.5 per cent to 4.75 per cent. This adjustment, according to Fed Chair Jerome Powell, reflects the Federal Reserve’s ongoing commitment to sustainable economic growth, as well as its long-term goal of moving inflation towards the 2 per cent target.