The move marked the first rate cut by the central bank in more than four years, since the beginning of the coronavirus pandemic.
A total of 11 members of the Federal Open Market Committee (FOMC) voted in favor of the decision, while only one member, Michelle W. Bowman, dissented, advocating for a smaller 25 basis point reduction.
"Job gains have slowed, and the unemployment rate has moved up but remains low," the FOMC wrote in its statement. "Inflation has made further progress toward the Committee’s 2 percent objective but remains somewhat elevated."
The FOMC said it has gained "greater confidence" that inflation is moving sustainably toward its 2% objective, and added that the risks to achieving its employment and inflation goals are roughly in balance.
Except for the emergency rate cuts during the start of the pandemic, the last time the Fed delivered a 50 basis points rate cut was during the global financial crisis in 2008.
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