The Federal Reserve cut its benchmark interest rate by a quarter point Oct. 29, lowering the target range to 3.75%–4.00%—its second reduction this year. The move aims to support a cooling labor market amid lingering inflation and uncertainty following the recent United States government shutdown.

Fed chair Jerome Powell said the decision reflects a balanced approach to sustaining growth while managing price stability, stressing that future rate cuts are not guaranteed. Opinions among policymakers were split: some argued more easing was needed, while others saw no justification for any cut.

Despite disagreement, the Fed maintained that economic activity is expanding moderately and inflation is trending closer to its 2 percent goal. Powell emphasized that upcoming policy decisions will depend on economic data, signaling a cautious, data-driven strategy rather than a shift toward aggressive rate reductions. The next policy meeting is scheduled for December.