The Globe and Mail reports in its Thursday, Oct. 30, edition that the U.S. Federal Reserve cut its key interest rates Wednesday to support economic growth and hiring amid high inflation. An Associated Press dispatch to The Globe reports that on Wednesday the Fed said: "Job gains have slowed this year, and the unemployment rate has edged up but remained low through August. More recent indicators are consistent with these developments." The government has not issued unemployment data after August because of the shutdown. The Fed is watching private-sector figures instead. Wednesday's decision brings the Fed's key rate down to about 3.9 per cent, from about 4.1 per cent. The Fed had cranked its rate to about 5.3 per cent in 2023 and 2024 to combat the biggest inflation spike in four decades. Lower rates could, over time, reduce borrowing costs for mortgages, auto loans and credit cards, as well as for business loans. On Wednesday, the Fed announced it will halt the reduction of its securities holdings starting Dec. 1. This may slightly lower long-term interest rates, like those on mortgages, but will have little effect on consumer borrowing costs.