The US Federal Reserve (Fed) reduced its benchmark interest rate by 25 basis points (one quarter point) on Wednesday, setting the new target range at 3.5% to 3.75%. This is the third consecutive rate cut.

Fed Chair Jerome Powell described the decision as close to a tough call, which indicated future cuts face a higher threshold.

The rate reduction, the lowest in three years, is intended to guard against a sharper-than-expected slowdown in job growth.

In response, US President Donald Trump criticized the Fed for the small scope of the cut, saying that the adjustment should have been at least double. Powell, meanwhile, said that elevated inflation is partially caused by the administration's tariff policies.