U.S. Fed lowers interest rate by 25 basis points in third cut this year

The U.S. Federal Reserve on Wednesday local time decided to lower the target range for the federal funds rate by 25 basis points to 3.5-3.75 percent, marking its third rate cut this year.

At a press conference, Fed Chair Jerome Powell said, "I would note that having reduced our policy rate by 75 basis points since September and 175 basis points since last September, the fed funds rate is now within a broad range of estimates of its neutral value, and we are well positioned to wait to see how the economy evolves".

Mentioning that the U.S.'s tariff policies have led to excessive inflation, Powell added this year's cuts are meant at stabilizing the labor market and steering inflation toward the 2 percent target after the tariff impact subsides.

U.S. President Donald Trump, however, said the Federal Reserve's latest cut could have been "at least doubled". He has long urged the central bank to slash rates to spur further economic growth, calling Fed Chair Jerome Powell "a stiff" who approved a "rather small" cut.