Doha: The US Federal Reserve (central bank) Wednesday lowered interest rates by 25 basis points, bringing the target range to between 4.00% and 4.25%, marking the first rate cut of the year. In a statement, the Fed explained that the decision was made in light of a slowing labor market and economic risks facing the US economy, while also indicating the possibility of two additional rate cuts before the end of the year.

According to Qatar News Agency, a majority of the Fed’s members voted in favor of the decision. The statement also pointed to expectations of a further 50 basis point reduction by year-end, followed by an additional 25 basis point cut in each of the next two years.