The US Federal Reserve has cut interest rates by 25 bps to 3.75%.
The US apex bank in its statement, said that available indicators suggest that economic activity has been expanding moderately, along with a slowing of job gains. Unemployment has edged higher in September, and inflation remains somewhat elevated.
The Fed statement said that policymakers Schmid and Goolsbee dissented and voted for no rate change, while Fed Governor Miran wanted a 50 bps rate cut. Statement says that the Committee will continue to carefully assess incoming data, evolution of outlook and balance of risks, while being strongly committed to returning inflation to its 2% target.
In essence, the Fed has delivered a hawkish cut, which has left several USD pairs and gold range-bound and in choppy mode. The Fed Chair’s press conference is expected at 1945 GMT, where he will take questions that could lead to unscripted answers and generate additional volatility.
