Fed cuts interest rates by quarter-point

The Federal Reserve on Thursday announced its second consecutive interest rate cut, lowering the benchmark rate by 25 basis points amid economic data showing signs that inflation and the labor market are cooling.

With the 25-basis-point cut, the benchmark federal funds rate will sit at a range of 4.5% to 4.75%.

The Fed's move follows a larger than normal cut of 50 basis points at its September meeting, which was the first rate cut since March 2020 and brought rates down from a range of 5.25% to 5.5% – which was the highest level since 2001.

The Federal Open Market Committee (FOMC), the Fed's policymaking arm, noted that "labor market conditions have generally eased, and the unemployment rate has moved up but remains low. Inflation has made progress toward the Committee's 2 percent objective but remains elevated."

Policymakers noted in the announcement that they're "attentive to the risks to both sides of its dual mandate" – which is to promote maximum employment and stable prices. All FOMC members voted in favor of the rate cut.

This is a developing story. Please check back for updates.