Al-Ahram reported on Wednesday evening that the US Federal Reserve decided to cut interest rates for the third time this year, reducing them on the dollar in line with expectations, to move within a range between 3.50% and 3.75%. The US Federal Reserve indicated that there would be a slower pace of cuts in the coming period, as the Federal Open Market Committee, responsible for setting interest rates, saw a significant division between members supporting the cuts as a means to avoid further weakening in the labor market and others who believe that monetary easing has reached a sufficient level and threatens to worsen inflation.
It is noted that the US Federal Reserve cut interest rates by 25 basis points on October 29th for the second time following the emergence of cracks, taking advantage of relatively stable inflation in the United States. The Federal Open Market Committee voted to reduce the benchmark interest rate to a range of 4% and 3.75%, marking the second reduction in borrowing rates since Donald Trump assumed the presidency of the United States.
The Federal Reserve pointed out that the negative risks to employment have risen, noting the slowdown in job growth this year, with the unemployment rate rising slightly but remaining low until August. The Federal Reserve announced that the committee decided to end the process of reducing its total securities holdings, known as ‘quantitative tightening’, on December 1st.
The Federal Reserve’s decision came after core inflation in the United States fell below expectations in September, according to the monthly report delayed due to American factors. Data from the Bureau of Labor Statistics released last week revealed that the core consumer price index, excluding the highly volatile food and energy categories, rose by 0.2% compared to last August, marking its slowest pace in three months.
