Getty ImagesUS share prices slumped after the central bank cut interest rates for the third time in a row but its economic projections signalled a slower pace of cuts next year.
In a widely expected move, the Federal Reserve set its key lending rate in a target range of 4.25% to 4.5%.
That is down a full percentage point since September, when the bank started lowering borrowing costs, citing progress stabilising prices and a desire to head off economic weakening.
Reports since then indicate that the number of jobs being created has been more resilient than expected, while price rises have continued to bubble.
Stocks in the US fell sharply as Federal Reserve chairman Jerome Powell warned the situation would likely result in fewer rate cuts than expected next year.
“We are in a new phase of the process,” he said at a press conference.
“From this point forward, it’s appropriate to move cautiously and look for progress on inflation.”
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