US Fed Rate Cut: FOMC Plots Another Half-Point Reduction This Year | As It Happened

Federal Reserve officials have raised their expected unemployment rate for this year to 4.4%, up from the June projection of 4%.

At the same time, they revised the inflation outlook downward to 2.3%, compared to 2.6% previously. For core inflation, the committee lowered its projection to 2.6%, a decrease of 0.2 percentage points from June.

Moreover, the forecast for the US GDP growth this year has been reduced to 2%, from the previous 2.1%.

• Fed remains squarely focused on dual mandate goals.

• Labour market has cooled from formerly overheated state.

• Fed committed to maintaining economy's strength.

• Fed can maintain labour strength with policy adjustment.

• Labour market conditions have continued to cool.

• Unemployment rate has moved up but remains low.

• Labour market not a source of elevated inflation pressures.

• Long-term inflation expectations appear well-anchored.

• Acutely aware high inflation poses significant hardship.

• Upside inflation risks have diminished, downside risks to employment have increased.

• US economy is in a good place; rate cut is to keep it there.

• We might well have cut in July if policymakers had known the July employment report.

• S&P 500 up 0.4%

• Dow Jones Industrial Average up 0.2%

• Nasdaq up 0.2%

Fed chief Jerome Powell said the era of near-zero interest rate is long gone.

Powell said migration from America's southern border, a contentious political issue, has increased while hiring has cooled, leading to higher number of job-seekers.