The U.S. Federal Reserve cut its benchmark interest rate by a quarter point Wednesday (Thursday Seoul time), lowering the target range for the federal funds rate to 4.00 to 4.25%, its first reduction since Dec. 2024. The Federal Open Market Committee said growth in economic activity had “moderated,” job gains had slowed and unemployment had edged up, while inflation “has risen recently and remains somewhat elevated.” The Fed said it would continue reducing its holdings of Treasury and agency securities and stood ready to adjust policy if risks to its dual mandate of maximum employment and stable prices emerged.

Fed