In line with market expectations, the Federal Reserve (Fed) has extended its interest rate cut at the latest FOMC meeting early this morning by 25 basis points.
Following the cut in September, interest rates were lowered from 4.25% previously to 4.00% with analysts viewing the action as a 'hawkish cut'.
Fed Chairman Jerome Powell appeared to deliver a follow-up speech after the announcement of the interest rate cut.
The employment sector in the United States (US) is still considered good and available indicators show economic activity growing at a moderate rate.
Powell expressed confidence that the central bank is on the right track to achieve its 2% inflation objective.
He added that the decision to cut rates this time is a risk management measure, while any subsequent policy decisions will be a different matter.
Powell also stressed that no decision has been made for the last FOMC meeting of the year.
Meanwhile, Powell said the impact of tariffs and the US government shutdown is a challenge for the economy and has also made the central bank cautious in making policy decisions.
Analysts assessed the different views of FOMC members who voted for a more aggressive cut while some supported keeping rates.
The US dollar showed significant strengthening in the initial reaction to the meeting ended with a slight rebound in the opening of the Asian session this morning (Thursday).
