Despite inflation risks, America cuts interest rates for the third time

The US central bank has cut interest rates for the third time, despite concerns that the move will boost the economy and risks rekindling price inflation.

The decision was expected, with the Federal Reserve’s key lending rate set at a target range of 4.25% to 4.5%.

That’s down a full percentage point since September, when the bank began lowering borrowing costs, citing progress in stabilizing prices and a desire to offset economic weakness.

Reports since then indicate that the job market has been more resilient than expected while prices have continued to rise.