Federal Reserve cuts interest rates for second time this year amid lagging job market

The Federal Reserve announced that it slashed interest rates for the second time this year amid rising unemployment and increasing inflation.

The Federal Open Market Committee released its statement on Wednesday saying that it would slash interest rates by a quarter of a percentage point.

“Uncertainty about the economic outlook remains elevated,” a statement said. “The Committee is attentive to the risks to both sides of its dual mandate and judges that downside risks to employment rose in recent months.”

The announcement comes amid a time of uncertainty for the central bank. Due to the government shutdown, the Bureau of Labor Statistics did not release its monthly jobs report. It likely will miss an additional jobs report in November should the government remain closed.

That complicates the Federal Reserve’s ability to determine whether to raise interest rates, lower them or keep them the same. The Federal Reserve’s Board of Governors has to balance its dual mandate to keep inflation low while not causing high unemployment.