The United States Federal Reserve made its second rate cut of the year on Thursday, just two months after a surprise cut in September.

The Fed cut the rate by 0.25%, making it fall within the target range of 4.5% to 4.75%.

The decision aligns with a decrease in the Fed’s preferred inflation measure, which fell to 2.1% last month, marginally above the central bank’s 2% target.

The rate cut aims to ease borrowing costs for consumers.

However, immediate effects on major purchases, such as homes and vehicles, may be limited.