US Fed cuts rate by quarter-point in third straight reduction

The US Federal Reserve cut interest rates by a quarter point Wednesday and signaled a slower pace of cuts ahead, amid uncertainty about inflation and President-elect Donald Trump's economic plans.

Policymakers voted 11-to-1 to lower the US central bank's key lending rate to between 4.25 percent and 4.50 percent, the Fed announced in a statement. They also penciled in just two quarter-point rate cuts for next year, and sharply hiked their inflation outlook for 2025.

While inflation has "eased significantly," the level remains "somewhat elevated" compared to the targeted two percent, US Federal Reserve Chair Jerome Powell said Wednesday.

Powell's comments came at the start of a news conference after the central bank announced it cut interest rates by a quarter point while signaling a slower pace of cuts ahead in the face of lingering concerns about consumer price pressures.