The US Federal Reserve (Fed) announced yesterday (October 29) that it would cut its benchmark interest rate by a quarter of a percentage point, or 0.25 percentage points, setting the new range at 3.75% to 4%.

The Fed cited increased downside risks to the job market and high uncertainty regarding the economic outlook. The central bank restated its commitment to achieving maximum employment and its long-term 2% inflation target, promising to adjust policy as needed.

Despite the cut, market participants still strongly anticipate another 0.25 percentage point cut in December and expect further rate easing in March next year.