🇺🇸 Fed Cuts Interest Rates to 3-Year Low Amidst Stalling Labour Market 📉

• The US Federal Reserve cut its key lending rate by 0.25 percentage points, setting the new target range at 3.75% to 4%. • This is the second rate reduction since September and brings the key rate to its lowest level in three years, aiming to ease US borrowing costs. • The move was primarily motivated by a stalling labour market, with the Fed noting that "job gains have slowed this year" and the unemployment rate has "edged up." • The cut proceeded despite the US Government shutdown delaying the official jobs report, which left Central Bankers "flying blind" on the market's current state. • Alternative data from payroll firm ADP indicated the US economy lost 32,000 jobs in September, reinforcing the trend of sluggish hiring. • The decision was not unanimous, with two voting members dissenting (one preferring a larger 0.5% cut and another voting to hold rates steady).