WASHINGTON (AP) The Federal Reserve cut its key interest rate Wednesday for the first time in a decade to try to counter the impact of President Donald Trumps trade wars, stubbornly low inflation and global weakness.
It left open the possibility of future rate cuts, but perhaps not as many as Wall Street had been hoping for. During a news conference, Chairman Jerome Powell struggled to find just the right words to articulate the Feds strategy and what might prompt future rate cuts at a time when the risk of a recession in the United States seems relatively low.
The Dow Jones Industrial Average tumbled to finish down 333 points, or 1.2%. The yield on the 10-year Treasury note fell to 2.01% from 2.06% late Tuesday, a sharp drop.