02:51 GMT +322 September 2019
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    A screen displays the U.S. Federal Reserve interest rates announcement as traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., July 31, 2019.

    Federal Reserve Reduces US Interest Rate to 2%-2.25% Range for the First Time in Decade

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    WASHINGTON (Sputnik) - The United States’ benchmark interest rate will decrease by 25 basis points to a range of 2 per cent to 2.25 per cent, the US Federal Reserve’s policy-setting Federal Open Market Committee (FOMC) said in a statement on Wednesday.

    "Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability," the statement said. "In light of the implications of global developments for the economic outlook as well as muted inflation pressures, the Committee decided to lower the target range for the federal funds rate to 2 to 2-1/4 per cent."

    According to the Associated Press, this is the first rate cut since December 2008 when the Federal Reserve reduced its rate almost to zero and kept it there until 2015.

    "In determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess realized and expected economic conditions relative to its maximum employment objective and its symmetric 2 per cent inflation objective. This assessment will take into account a wide range of information, including measures of labour market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments." a statement by the Federal Reserve says.

    The central bank's benchmark rate affects many loans for businesses and households.   

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