The Federal Reserve cut interest rates by a vote of 9-3, a smaller margin than typically seen. The Federal Open Market Committee (FOMC), the panel of Federal Reserve officials responsible for setting monetary policies, dropped the interest rate range to 3.5% to 3.75%, a 0.25% reduction.

Available indicators suggest that economic activity has been expanding at a moderate pace. Job gains have slowed this year, and the unemployment rate has edged up through September. More recent indicators are consistent with these developments. Inflation has moved up since earlier in the year and remains somewhat elevated.

The committee dropped interest rates closer to its 2% goal, although it says economic uncertainty remains front of mind for consumers.

Federal Reserve chair Jerome Powell says the Fed is in a difficult position, as the job market slows and inflation ticks upward.