The second interest rate cut this year, following a similar 0.25-point decrease in September, has set the benchmark rates within a range of 3.75% to 4%.
The decision was reportedly not unanimous. Two of the twelve members of the Federal Open Market Committee (FOMC) opposed the measure for differing reasons. One member advocated for a more significant cut of half a percentage point, while the other opposed any reduction.
The interest rate decrease was decided on the second and final day of the FOMC meeting, which consists of the seven members of the Board of Governors of the Federal Reserve System, the president of the Federal Reserve Bank of New York, and four of the remaining 11 Reserve Bank presidents, who serve one-year rotating terms.
U.S. President Donald Trump has consistently supported lower interest rates to reduce borrowing costs and promote his pro-growth policies, which include tax cuts, deregulation, and tariffs.
[News updated at 18:24]
