The U.S. central bank cut interest rates Wednesday for the second time in two months amid global uncertainties and a possible impending slowdown.
The Federal Reserve lowered its target range for the federal funds rate to 1.75% – 2%.
The Federal Open Market Committee (FOMC) said it seeks to foster maximum employment and price stability.
“In light of the implications of global developments for the economic outlook as well as muted inflation pressures, the Committee decided to lower the target range,” the FOMC said.
The move supports the committee’s view that sustained expansion of economic activity, strong labor market conditions and inflation near its symmetric 2% objective were the most likely outcomes, it said, “but uncertainties about this outlook remain.”
The committee said it would continue to monitor the implications of incoming information for the economic outlook and act as appropriate to sustain the expansion, with a strong labor market and inflation near its symmetric 2% objective.
U.S. President Donald Trump said the decision was a failure.
“Jay Powell [Fed head] and the Federal Reserve Fail Again. No ‘guts,’ no sense, no vision!” Trump tweeted.
“A terrible communicator!” he added.
In late August, the Fed lowered its benchmark rate by 25 basis points to a range of 2%-2.25% for the first time since the 2008 financial recession.