The U.S Federal Reserve announced today they will cut the interest rate by a quarter percentage point from the current 3.75%-4% range.

Today’s announcement, the second this year, puts the overnight funds rate in a range between 4%-4.25%.

The cut comes despite the ongoing federal government shutdown, which means the fed had limited access to key government reports, including nonfarm payrolls and retail sales.

In their statement explaining the move, the fed acknowledged the lack of key data metrics, but pointed to other datasets.

“Available indicators suggest that economic activity has been expanding at a moderate pace. 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 statement said. “Inflation has moved up since earlier in the year and remains somewhat elevated.”

Higher interest rates make it more expensive for companies and individuals to borrow funds, which in turn, restricts access to cash and constrains their ability to spend, reducing pressure on prices.

Mortgages are also tied to yields for government bonds, and have an affect on housing prices as well.