The Federal Reserve on Thursday announced its second consecutive interest rate cut, lowering the benchmark rate by 25 basis points amid economic data showing signs that inflation and the labor market are cooling.

With the 25-basis-point cut, the benchmark federal funds rate will sit at a range of 4.5% to 4.75%.

The Fed's move follows a larger than normal cut of 50 basis points at its September meeting, which was the first rate cut since March 2020 and brought rates down from a range of 5.25% to 5.5% – which was the highest level since 2001.

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