Breaking... The U.S. Federal Reserve lowers interest rates for the third consecutive meeting.

After the conclusion of its meeting today, Wednesday, the Federal Open Market Committee (FOMC) of the U.S. Federal Reserve decided to reduce U.S. interest rates by 25 basis points at the December meeting, bringing the upper limit of the federal funds rate to 4.50%, down from 4.75%. This aligns with widespread market expectations.

The FOMC's decision to lower rates this December marks the third consecutive time the bank has cut interest rates, following the first reduction during the September meeting since March 2020. This was in conjunction with the release of several economic data points from the U.S. over the past period, which indicated a slowdown in inflation near the Federal Reserve’s target.

The U.S. Federal Reserve sets short-term interest rates in the United States based on its decision regarding the rate that banks pay each other during overnight trading to borrow their reserves in case of a shortfall in necessary reserves, known as the reserve interest rate.

In just a few minutes, we will provide you with details of the interest rate statement issued by the U.S. Federal Reserve, which may offer further clarification on the U.S. economic conditions and the circumstances surrounding the monetary policy decisions, which usually have a strong impact on dollar trading against other currencies.

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