The US Federal Reserve on Wednesday lowered its benchmark interest rate by 1/4 percentage point to 3-1/2 to 3‐3/4 per cent, citing slower job gains, a slight rise in unemployment, and persistently elevated inflation. The Federal Open Market Committee (FOMC) said economic activity continues to expand moderately, but downside risks to employment have increased. The Fed remains committed to maximum employment and a 2 per cent inflation target, adding that it will carefully assess incoming data before making further changes. The FOMC also stated that reserve balances are ample and it will purchase short-term Treasury securities as needed to maintain liquidity. Attribution: Amwal Al Ghad English
