FED

Oil Prices Rise as US Fed Cuts Rates by 25 Basis Points

WASHINGTON: The Federal Reserve lowered its benchmark lending rate by 25 basis points to the 3.75–4.00% range, aligning with market expectations, after recent inflation data came in below forecasts.

Headline inflation rose to 3.0% in September from 2.9% in August, while core inflation eased to 3.0% from 3.1%. Both figures were lower than the 3.1% consensus.

US Fed Cuts Rates

Rystad Energy’s chief economist Claudio Galimberti said the Fed’s move reflects “acknowledgment of softer labor momentum” and marks a policy pivot toward stabilizing financial conditions. The rate cut and end of quantitative tightening are expected to inject liquidity into markets, easing pressure on banks and Treasury funding costs.

Oil prices rose slightly following the decision, as investors viewed the move as supportive of short- and medium-term demand and global growth sentiment. The Fed’s shift indicates a broader focus on reflation and economic support rather than restraint.

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