Federal Reserve reduces interest rate

WASHINGTON — The Federal Reserve reduced its key interest rate for the third time in a row Wednesday but indicated it may leave rates unchanged in the coming months, a move that could attract ire from President Donald Trump, who has demanded steep reductions to borrowing costs.

In a statement released after a two-day meeting, the Fed's rate-setting committee suggested it might keep its rate unchanged in the coming months. In a set of quarterly economic projections, Fed officials signaled they expect to lower rates just once next year.

Wednesday's cut reduced the rate by a quarter-point to about 3.6%, the lowest it has been in almost three years. Lower rates from the Fed can bring down borrowing costs for mortgages, auto loans and credit cards over time, though market forces can also affect those rates.

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