Fed Lowers Interest Rates by Quarter Point

While the unemployment rate remains low, it has edged up. Job gains have slowed and downside risks to employment have risen. At the same time, inflation has risen recently and remains somewhat elevated. In support of our goals, and in light of the shift in the balance of risks, today, the Federal Open Market Committee decided to lower our policy interest rate by a quarter-percentage point. We have to keep our eye on inflation. At the same time, we cannot ignore and must keep our eye on maximum employment, which is — those are our two equal goals. Overall, the market’s slowing in both the supply of and demand for workers is unusual. In the near term, risks to inflation are tilted to the upside and risks to employment to the downside — a challenging situation.