Thursday, October 30, 2025

World

US Fed cuts interest rates as govt shutdown clouds economic outlook

IANS | October 30, 2025 09:54 AM

WASHINGTON: The US Federal Reserve on Wednesday lowered its benchmark lending rate by a quarter percentage point, bringing the target range to 3.75 per cent to 4 per cent, as policymakers grapple with limited economic data due to a federal government shutdown.

The rate cut marks the second reduction in borrowing costs this year.

The decision, approved by a 10-2 vote, comes as the US government’s funding lapse stretches into its fifth week.

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