The Federal Reserve cut interest rates again Thursday, the second cut in as many months. The new federal funds rate is now 4.5%-4.75%.
The central bank is responding to falling inflation and signs the job market could be cooling. U.S. employers added 12,000 jobs in October, down from 254,000 jobs in September. October's tally was impacted by a Boeing strike as well as the effects of hurricanes Helene and Milton.
"Since earlier in the year, labor market conditions have generally eased, and the unemployment rate has moved up but remains low," the Federal Reserve says in a statement. "The (Federal Open Market Committee) seeks to achieve maximum employment and inflation at the rate of 2% over the longer run."
The move comes amid uncertainty after Tuesday's presidential campaign culminated in the re-election of Donald Trump. President Trump has said he would cut taxes, impose tariffs and deport large numbers of immigrants living in the U.S., any one of which could put pressure on prices.
The Fed's move affects short-term interest rates, while the bond market sets longer-term interest rates. This week, those yields pushed higher after Trump's election has his policies could add to federal debt.
After the initial cut in September, economist Dr. Bob Dieli called it "a first step," and said everyone expects the Fed to adjust policy as needed to maintain the health of the national financial system. Any move, he warned, takes time to move through the system.
The committee voted unanimously to cut the rate. It will meet again Dec.
