The U.S. Federal Reserve cut interest rates by 50 basis points in the latest Federal Open Market Committee statement on Sept. 18, while noting job gains have slowed, and the unemployment rate has moved up but remains low.

The Fed rate now sits between 4.75-5.0%, marking the first rate cut since March 2020.

In a statement following its two-day FOMC meeting, the Fed noted that, “The committee has gained greater confidence that inflation is moving sustainably toward 2%, and judges that the risks to achieving its employment and inflation goals are roughly in balance.”

The committee emphasized its objective to achieve maximum employment and inflation at the rate of 2% in the long run.

“We’re not really at 2%,” Fed Chair Jerome Powell told media in a news conference after the meeting, referring to the inflation rate. “We’re certainly not saying mission accomplished or anything like that. We’re encouraged by the progress we have made.”

He added: “We’re trying to achieve a situation where we restore price stability without the kind of painful increase in unemployment that has come sometimes.”

The Fed’s next FOMC meeting is Nov. 6-7.