The Federal Reserve has lowered the target range for the federal funds rate by 0.5%, now set at 4.75% – 5%, due to progress in inflation control and balanced economic risks. While job gains have slowed and unemployment has risen slightly, inflation continues to move toward the Fed’s 2% goal. The Fed will keep reducing its holdings of Treasury and mortgage-backed securities and will adjust policy as needed to ensure maximum employment and stable inflation.

Federal Reserve Board – Federal Reserve issues FOMC statement