Low rates can, over time, reduce the cost of borrowing for mortgages, auto loans and credit cards, as well as business loans. (Photo: Reuters) The Federal Reserve cut its key interest rate on Wednesday for the second time this year as it seeks to boost economic growth and hiring, even as inflation remains high.

“The pace of jobs growth has slowed this year and the unemployment rate rose but remained low during August,” the Fed said in a statement Wednesday. “Recent indicators are consistent with these developments.

” Due to the shutdown, the government has not released unemployment figures after August. The Fed is instead looking at private sector data.