Federal Reserve cuts interest rates for 2nd time
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Stocks and bonds initially rallied after the central bank cut interest rates on Sept. 17, but began giving up those gains before Federal Reserve Chair Jerome Powell started his post-meeting press conference.
Some policymakers have expressed caution about lowering rates further, while President Donald Trump and his recent appointee have pushed for steep cuts.
The Japanese yen tumbled against the U. dollar on Thursday after the Bank of Japan adopted a less hawkish tone than traders expected, while the greenback was boosted after Federal Reserve Chair Jerome Powell on Wednesday said a rate cut in December was not guaranteed.
Concerns about a weakening labor market may outweigh worries about rising inflation, tipping the Fed toward another rate cut, economists say.
The U.S. central bank is widely expected to cut interest rates for the second meeting in a row even though the government shutdown is obscuring officials’ view of the economy.
Follow MarketWatch's live coverage of Wednesday's Federal Reserve decisions, after the central bank cut interest rates by 25 basis points and said it's ending its program of "quantitative tightening" on Dec.