(LEAD) U.S. Fed cuts key lending rate by quarter-percentage point

▲ U.S. Federal Reserve Chairman Jerome Powell holds a press conference in Washington on Sept. 18, 2024 in this photo released by AFP. (Yonhap)

(LEAD) FOMC-rate decision

(LEAD) U.S. Fed cuts key lending rate by quarter-percentage point

(ATTN: ADDS more info in paras 3-6)

By Song Sang-ho

WASHINGTON, Nov. 7 (Yonhap) -- The U.S. Federal Reserve lowered its benchmark interest rate by a quarter-percentage point on Thursday, marking the second consecutive reduction following a jumbo 50-basis-point cut in September.

After the two-day Federal Open Market Committee (FOMC) meeting, the central bank announced the decision to reduce the rate to the 4.50 to 4.75 percent range. It came after Republican flag-bearer Donald Trump won in Tuesday's presidential election over Vice President Kamala Harris.

In a press release, the Fed said that inflation has made progress toward the committee's 2 percent objective but remains "somewhat elevated."

"The committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run," it said.

"The committee judges that the risks to achieving its employment and inflation goals are roughly in balance. The economic outlook is uncertain, and the Committee is attentive to the risks to both sides of its dual mandate," it added.

This week's Fed rate cut put the gap between the key rates of South Korea and the United States at 1.5 percentage points.

FOMC members' new median economic projections showed in September that the federal funds rate would be cut to 4.4 percent at the end of this year -- a hint that the Fed could further lower the rate later this year.

Trump is seen as wanting the White House to have some say in the Fed's monetary policy decisions. During a media interview last month, he was quoted as saying, "I think I have the right to say I think you should go up or down a little bit," in reference to the benchmark rate.

The next FOMC meeting is slated to take place on Dec. 17-18.

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