The Fed cut interest rates for the third consecutive time.

According to the Vietnam News Agency correspondent in New York, at the conclusion of the two-day meeting of the Federal Open Market Committee (FOMC), the Fed's policymaking body, the US central bank announced a 25-basis-point cut, bringing the federal funds rate down to a range of 3.5% - 3.75%.

The headquarters of the US Federal Reserve (FED) in Washington, DC. (Photo: Kyodo/TTVN)

This marks the third interest rate cut by the Fed in four months, signifying a significant milestone in monetary policy and opening up opportunities for easier and more affordable access to borrowing options for millions of Americans.

In a statement, the FOMC noted that updated data showed economic activity expanding at a moderate pace, job growth slowing this year, and the unemployment rate rising slightly through September. To support its objectives, the Fed decided to lower the overnight lending rate by another 0.25 percentage points.

However, the Fed affirmed that it will carefully assess upcoming data, the economic outlook, and risks to adjust monetary policy appropriately, without putting pressure on the economy, and with the goal of bringing inflation back to its 2% target.

By deciding to extend the interest rate cut cycle and bring interest rates down to their lowest level in over three years, the Fed expects to create a more favorable lending environment to support the world's largest economy.

For millions of Americans planning to take out mortgages to buy homes or cars, this change is expected to have an immediate impact. In addition, economic experts predict the Fed's move will be a boost to consumer spending as the US enters the holiday shopping season.

(Source: Tin Tuc Newspaper)

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