NEW YORK, New York – U.S. stocks stopped for breath on Wednesday after the Federal reserve lowered interest rates as expected, but cast doubt on a further December cut, anticipated by market participants.
“In the committee’s discussions at this meeting, there were strongly differing views about how to proceed in December,” Chair Jay Powell said during his post-meeting news conference. “A further reduction in the policy rate at the December meeting is not a foregone conclusion. Far from it,” he said.
While stock markets sobered up, the U.S. dollar firmed.
Earlier the official FOMC statement outlines reasons for Wednesday’s interets rate decision. “In support of its goals and in light of the shift in the balance of risks, the Committee decided to lower the target range for the federal funds rate by 1/4 percentage point to 3-3/4 to 4 percent. In considering additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks,” the FOMC statement said.
