Fed move reflects concern at uncertainties

The US Federal Reserve on Wednesday announced its decision to cut its key overnight lending rate by a quarter of a percentage point to a target range of between 1.50 percent and 1.75 percent. The reduction is a sign of caution by the US monetary policymakers given the continuing economic uncertainties both in the United States and worldwide.

"We took this step to help keep the US economy strong in the face of global developments and to provide some insurance against ongoing risks," Fed Chairman Jerome Powell told reporters at a news conference.

Although the US economy has fared largely well in recent years, the country's manufacturing activities have weakened in recent months. And the latest data show that GDP growth in the third quarter had slowed to 1.9 percent, down from 2.1 percent and 3.1 percent in the first and second quarter, respectively.