The U.S. Federal Reserve has lowered the target range for the federal funds rate by 25 basis points, bringing it to 3.5% to 3.75%. This marks the third rate cut of the year, a move that was widely anticipated.

This decision represents the third consecutive rate cut following the Federal Open Market Committee's (FOMC) monetary policy meeting in September. The committee noted that uncertainty surrounding the economic outlook has increased. It stated that its focus is on risks to both sides of its dual mandate (price stability and maximum employment), judging that the risk of negative impacts on employment has risen in recent months.

Concerns in the Labor Market:
This decision comes against a backdrop of concerning employment data. Recently released statistics from Automatic Data Processing, Inc. (ADP) show that U.S. private companies cut 32,000 jobs in November. This challenges economists' expectations for a gain of 40,000 jobs for the month. Notably, small businesses with fewer than 50 employees lost 120,000 jobs in November.

These figures indicate pressure on the labor market, confirming the Fed's mention of uncertainty in the economic outlook. The Fed has also signaled its readiness to adjust policy further as needed.