The U.S. Federal Reserve lowered its benchmark interest rate by 0.5 percentage points to 4.75% to 5%, citing progress in reducing inflation. The Federal Open Market Committee noted that inflation is closer to its 2% goal but remains elevated. Job gains have slowed, and the unemployment rate has risen slightly but remains low. The Fed reaffirmed its commitment to managing both inflation and employment targets.

The Fed also emphasized that the economic outlook remains uncertain and will closely monitor labor market conditions, inflation and global developments. It indicated readiness to adjust policy if needed. The Fed stated it will also continue reducing its Treasury and mortgage-backed securities holdings.