US Federal Reserve Lowers Key Benchmark Rate by a Quarter Point
The central bank has implemented a cut in its key interest rate by a quarter point, marking the first such move this year.
Investor Response Tepid
Investor sentiment to the announcement and following remarks has been fairly muted.
Major US indices briefly climbed before losing momentum as the press conference continued.
Consequently, the Dow steady, the S&P 500 dropping 0.6%, and the Nasdaq Composite falling nearly 1 percent.
Mixed Outlook for Markets
Lower interest rates usually boost cheaper borrowing—though a weakening economy could spell trouble.
Although the jobless rate holds steady, Powell has emphasised potential weaknesses to the job market after its summer slowdown.