The Federal Reserve announced another ¼% rate cut, bringing the current federal interest rate to 3¾ to 4%, the lowest level in three years. The move is intended to ease financial conditions amid growing economic softening, even as inflation remains above the Fed’s target.

“The economy is strong overall and has made significant progress toward our goals over the past two years,” says Jerome Powell, Federal Reserve chair, “with a 4% jobless rate considered around the level of full employment, and inflation lower though still more than half a percentage point above the Fed’s target.

Inflation has eased to around 3 %, down from previous quarters, but is still above the Fed’s 2% goal. The labor market has also shown signs of cooling as job gains have slowed and the unemployment rate has inched up.

To support the labor market, the Fed also announced it will end its active reductions of securities holdings, effective Dec. 1.