The Federal Reserve announced a quarter-of-a-point interest rate cut at its Nov. 7 meeting. The move targets a range of 4.5% to 4.75% from its current 4.75% to 5% level.

The 12-member Federal Open Market Committee (FOMC) took the action. It follows a half-point rate cut at the Fed's September meeting.

"Recent indicators suggest that economic activity has continued to expand at a solid pace. Since earlier in the year, labor market conditions have generally eased, and the unemployment rate has moved up but remains low," the FOMC said in a statement. "Inflation has made progress toward the Committee's 2% objective but remains somewhat elevated. The Committee seeks to achieve maximum employment and inflation at the rate of two percent over the longer run."

The FOMC said that in considering additional adjustments, it will carefully assess incoming data, the evolving outlook and the balance of risks.

Federal Reserve Chair Jerome Powell said the economy is strong and has made significant progress toward the central bank's goals over the past two years.

"Today, the FOMC decided to take another step in reducing the degree of policy restraint by lowering our policy interest by a quarter percentage point," said Powell during his press conference. "We continue to be confident that with an appropriate recalibration of our policy stance, strength in the economy, and the labor market can be maintained - with inflation moving sustainably down to two percent. We also decided to continue to reduce our securities holdings."

Powell stressed the Federal Reserve's monetary policy actions are guided by its dual mandate to promote maximum employment and stable prices for the American people.

"We see the risks to achieving our employment and inflation goals as being roughly in balance, and we are attentive to the risks to both sides of our mandate," said Powell. "This further recalibration of our policy stance will help maintain the strength of the economy and the labor market and will continue to enable further progress on inflation as we move towards a more neutral stance over time."

When asked by reporters if he would step down from the role if asked by President-elect Donald Trump, who appointed Powell in 2018, Powell simply responded, "No." His term as Fed chair ends in May 2026.