WASHINGTON, Dec. 18 (Xinhua) -- The U.S. Federal Reserve on Wednesday slashed interest rates by 25 basis points, the third consecutive rate cut in this easing cycle, as it braces for uncertainty stemming from the incoming Donald Trump administration's tariff policies.
"The economic outlook is uncertain, and the Committee is attentive to the risks to both sides of its dual mandate," the Federal Open Market Committee (FOMC), the central bank's policy-setting body, said in a statement.
In support of its goals, the committee decided to lower the target range for the federal funds rate by 25 basis points to 4.25 percent to 4.5 percent, it continued.
The FOMC noted that the committee "would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals."
Fed officials have indicated that they might soon reduce the speed of interest rate cuts, not only due to persistent inflation, but also because of uncertainty surrounding the incoming Trump administration's tariff policies, which could push up inflation.
After its Sept. 17-18 meeting, the central bank slashed the target range for the federal funds rate by 50 basis points, which marked the first rate cut in over four years and signaled the start of an easing cycle.
After its Nov. 6-7 meeting, it further lowered the target range for the federal funds rate by 25 basis points to 4.5 percent to 4.75 percent amid cooling inflation and a weakening labor market.
