The US Federal Reserve decided to reduce interest rates by 0.25% to a range of 4.25% and 4.5% to continue its accommodative policy expected by the market.
The decision came despite the rise in annual inflation during the month of November to 2.7% from 2.6% recorded in the previous October, while the US Central Bank targets an inflation level of 2%.
Labor market
On the labor market front, US job growth accelerated in November after it was severely affected by Hurricanes Helen and Milton and a strike at Boeing, but this likely did not cause a major shift in labor market conditions, which continue to improve rapidly.
The US Department of Labor said in its report on jobs – today, Wednesday – that non-farm payrolls increased by 227,000 – last month – after there was an upward revision to the data for October, to increase by 36,000 jobs.
The unemployment rate rose to 4.2% after remaining stable at 4.1% for two consecutive months, and the average hourly wage increased 0.4% after rising 0.4% in October.
caution
Federal Reserve Chairman Jerome Powell said early this month that the economy is stronger than it appeared in September when the central bank began cutting rates, allowing policymakers to be more cautious in lowering rates further.
US retail sales increased by 0.7% last November to record $724.6 billion, compared to $719.7 billion last October.
High interest rates are a pressing factor on economic growth, as they reduce demand.
