The Federal Reserve on Thursday trimmed the benchmark interest rate by a quarter percentage point, citing a softening labor market and progress in slowing inflation toward its 2% goal.

“The committee judges that the risks to achieving its employment and inflation goals are roughly in balance,” the policy-setting Federal Open Market Committee said in a statement after a two-day meeting. The unanimous decision followed a half-percentage-point cut in September that prompted a lone dissent. 

“Since earlier in the year, labor market conditions have generally eased, and the unemployment rate has moved up but remains low,” the FOMC said. “Inflation has made progress toward the committee's 2% objective but remains somewhat elevated.

The reduction in borrowing costs comes just two days after a general election in which Donald Trump won a second term as president. His return to the White House heralds likely shifts in U.S. economic policy that may fuel inflation and influence coming FOMC decisions. 

Trump during the campaign promised to cut a variety of taxes, a move that would fuel economic growth and likely increase price pressures. He also pledged to impose tariffs on all imported goods by between 10% to 20%, with levies on goods from China as high as 60%. 

Both policy changes may complicate efforts by the Fed to curb inflation to its 2% goal from more than 9% two years ago. 

This is a developing story. Read more on our website for live updates.