The Federal Reserve on Wednesday slashed its key lending rate by a quarter percentage point for the final time this year — but signaled the pace of cuts will slow in the year ahead as the central bank moves to keep a lid on inflation. The widely expected quarter-point cut reduced the Federal Reserve’s target rate to between 4.25% and 4.5%.

New data from the Labor Department shows the consumer price index, a key inflation gauge, rose 0.3% in November. That will likely impact the Federal Reserve's final interest rate decision of 2024. CBS News MoneyWatch correspondent Kelly O'Grady has more.

WASHINGTON -- Below is the statement the Federal Reserve released Wednesday after its latest policy meeting ended:

U.S. consumer prices increased by the most in seven months in November, but that is unlikely to discourage the Federal Reserve from delivering a third consecutive interest rate cut next week against the backdrop of a cooling labor market and rental costs.

U.S. unit labor costs grew far less than initially thought in the third quarter, pointing to a still favorable inflation outlook even though price increases have not moderated much in recent months. T

Many workers will be furloughed, while some employees will be required to report to work if their job is considered essential. In both cases, federal employees will receive back pay when the shutdown ends, though new paychecks won't be generated after the funding deadline lapses on Saturday at 12:01 a.m. ET.

Some workers would be forced to report to work, while others would be furloughed. A government shutdown would have significant consequences for more than two million federal employees. Some would be forced to report to work and the rest would be furloughed. None would be paid during the shutdown.

U.S. consumer spending increased in November amid strong demand for a range of goods and services, underscoring the economy's resilience, which saw the Federal Reserve this week projecting fewer interest rate cuts in 2025 than it had in September.

If Congress fails to pass the continuing resolution to fund the government by Saturday, millions of federal workers could head into the holidays without paychecks. They could be furloughed or be asked to work without pay.

Herschel Walker. Trump picked former football player Herschel Walker to serve as his ambassador to the Bahamas, a job that requires Senate confirmation. A H

US Federal Reserve policymakers have underlined the importance of Donald Trump's policies as the US President.