Rate cut will provide insurance against ongoing risks: Fed chairman

For the third time this year, the Federal Reserve on Wednesday cut interest rates by a quarter of a percentage point.
1:17 | 10/30/19

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Transcript for Rate cut will provide insurance against ongoing risks: Fed chairman
Today we decided to lower the interest rates for the third time this year we took this step to help keep the US economy strong in the face of global developments. And to provide some insurance against the ongoing risks. The US economy is in its eleventh year of expansion. And the baseline outlook remains favorable. Then. The overall economy is growing at a moderate rate. Household spending continues to be strong supported by healthy job market. Rising incomes and solid consumer confidence. In contrast business investment and exports remain weak. And manufacturing output has declined over the past year. Sluggish growth abroad and trade developments have been weighing on those sectors. Looking ahead we continue to expect the economy to expand at a moderate rate reflecting solid household spending in support of financial conditions. The job market remains strong. And unemployment rate has been near half century lows for a year and a half. The pace of job gains has eased this year but has remained solid we had expected some slowing after last year's strong pace. Participation and labor force by people in their prime working years has been increasing. In wages have been rising particularly for lower paying jobs.

This transcript has been automatically generated and may not be 100% accurate.

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