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The Federal Reserve (Fed) announced on October 29 that it would again lower interest rates by 25 basis points, bringing the target range for the federal funds rate down to 3.75% to 4%. This is the second rate cut by the Fed since 2025.
The Fed is trying to strike a balance between its dual mandate of "promoting maximum employment" and "maintaining price stability."
On one hand, the employment market shows signs of weakness, with increasing downside risks; on the other hand, inflation has risen since the beginning of the year and remains above the 2% target level.
In addition, the U.S. government's tariff policy has driven up commodity prices, making the decision-making environment for the Fed more complex.