The Federal Reserve cut interest rates by a quarter of a percentage point, the first decrease in nine months. The target range now sits at 4% to 4.25%. The decision was expected, with a 96% chance of a rate cut according to the interest-rate futures market.

The Fed’s cautious approach was driven by weakening labor conditions and rising inflation. The latest consumer price index for August was almost a full percentage point above the Fed’s 2% target. The decision was made to manage risks amid economic uncertainty.

Read more at Dow Jones & Company: Fed Cuts Interest Rates by a Quarter Point, as Expected