Fed Cuts Rates Again as Job Market Cools

The U.S. Federal Reserve has cut its key interest rate for the third time this year. The central bank lowered the rate by 0.25%, or 25 basis points. The move places the benchmark federal funds rate in a range of 3.5% to 3.75%. Officials stated that "downside risks" to employment have increased recently. They also noted that job gains have slowed from earlier strong levels. This shift in the labor market was a key factor in the decision to lower borrowing costs. The rate cut aims to support economic activity by making loans cheaper for businesses and consumers. The Fed uses this primary tool to manage growth and employment. Previous cuts occurred in July and September. Financial markets had widely expected this latest reduction.