The Federal Reserve cut interest rates for the first time this year following its two-day policy meeting that concluded on Sept. 17.

Members of the Federal Open Market Committee (FOMC) voted to reduce the benchmark federal funds rate by 25 basis points, setting the new target range at 4 percent to 4.25 percent.

The federal funds rate is a central benchmark that influences borrowing costs across the U.S. economy, affecting everything from business loans to household mortgages.

“Recent indicators suggest that growth of economic activity moderated in the first half of the year. Job gains have slowed, and the unemployment rate has edged up but remains low. Inflation has moved up and remains somewhat elevated,” the FOMC said in a statement.

This move comes after a prolonged period of leaving rates unchanged since January, as Fed officials closely monitored the economic effects of President Donald Trump’s comprehensive trade agenda.