Policymakers at the US Federal Reserve have decided to cut their key interest rate by 0.25 percentage points. It is the third time in a row that they lowered the rate. They want to fix what they see as sluggish conditions in the labor market.
Policymakers wrapped up their regular two-day meeting on Wednesday.
Federal Reserve Chair Jerome Powell said: "Risks to inflation are tilted to the upside and risks to employment to the downside. A challenging situation. There is no risk-free path for policy as we navigate this tension between our employment and inflation goals."
The Fed's target range is now between 3.5 to 3.75 percent. Policymakers believe "uncertainty about the economic outlook remains elevated."
The Fed lowered rates at both its meetings in September and October. Policymakers were concerned about the weakening labor market, and they were unsure about the impact of President Donald Trump's policies on immigration and tariffs.
The government shutdown complicated the decision this time around, delaying the release of key data about unemployment that policymakers use to help set rates. The figures for September show that the jobless rate ticked up.
A Fed report known as the "Beige Book" had a similar finding. It showed that employment declined slightly, with policymakers seeing weaker labor demand in half of the districts they cover.

Quiz 1:
What action did the US Federal Reserve take for the third time in a row?
A. Increased their key interest rate
B. Cut their key interest rate
C. Maintained their key interest rate
D. Froze their key interest rate

Quiz 2:
What is the current target range of the Fed's key interest rate?
A. Between 1.5 to 1.75 percent
B. Between 2.0 to 2.25 percent
C. Between 3.0 to 3.25 percent
D. Between 3.5 to 3.75 percent

Quiz 3:
According to the Fed's report, what was the general finding on employment in September?
A. Employment increased slightly
B. Employment decreased slightly
C. Employment remained stable
D. No data about unemployment was available due to a government shutdown