Washington: The US Federal Reserve on Wednesday lowered its benchmark lending rate by a quarter percentage point, bringing the target range to 3.75 per cent to 4 per cent, as policymakers grapple with limited economic data due to a federal government shutdown.

The rate cut marks the second reduction in borrowing costs this year.

The decision, approved by a 10-2 vote, comes as the US government’s funding lapse stretches into its fifth week.

The shutdown has forced agencies, including the Bureau of Labour Statistics, to suspend the collection and publication of key economic indicators, leaving the central bank with a partial view of the economy’s performance.

Wednesday’s rate cut brought borrowing costs below 4 per cent for the first time since late 2022. Policymakers cited uncertainty

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