The moves corresponded to market expectations and follow recent economic reports showing weaker job growth that Fed Chair Jerome Powell said justified a greater focus on the Fed’s labour market mandate compared with inflation.
US stocks were choppy after the decision, with the Dow Jones ending up 0.6 percent at 46,018.
The S&P 500 shed 0.1 percent to 6,600, while the Nasdaq declined 0.3 percent to 22,261.
“Everything landed right in the middle of the fairway,” said B Riley Wealth Management’s Art Hogan, noting that equity markets had risen in anticipation of Wednesday’s moves.
Based on the projections released on Wednesday, Hogan said Fed policy makers appeared to be close to evenly split between those who expect at least two interest rate cuts later this year and those who anticipate one or fewer.
Powell reiterated that additional interest rate actions would depend on upcoming economic data.
Lyft jumped 13.1 percent as it announced a plan with Alphabet’s Waymo to launch driverless ride-hailing services in Nashville in 2026. Alphabet dipped 0.6 percent. (AFP)
