Investing.com - The Federal Reserve cut interest rates by 25 basis points Wednesday, in what was a widely expected decision, amid persistent concerns over a slowdown in the global economy and trade tensions.
The Federal Open Market Committee cut its fed funds rate to a range of 1.5% to 1.75% from a previous range of 1.75% to 2.00%.
It was the third rate cut in as many meetings, with the Fed sticking to its guidance that it would “act as appropriate” to keep economic growth alive.
But the Fed has been quick to rein in investor expectations that a prolonged period of easing may follow, characterizing the previous rate cuts – in July and September – as an insurance policy against downside risks to its outlook.
That has done little to appease its detractors, who believe the central bank should accelerate rate cuts, potentially into negative territory.
"The Fed doesn’t have a clue! We have unlimited potential, only held back by the Federal Reserve," President Donald Trump wrote on Twitter Tuesday.
The pace of inflation, meanwhile, has also supported calls for easing.
The core price consumption expenditures (PCE) index, the Fed's preferred measure of inflation, has remained shy of the central bank's 2% target.
In the lead-up to the Fed meeting, Scotiabank Economics said that since its last meeting in mid-September there’s “increased evidence of a synchronous deterioration in global growth prospects and continued uncertainty toward Brexit and trade policy developments with as yet nothing resolved.”
Traders are expected to shift attention to Fed Chairman Jerome Powell's press conference at 2:30 PM ET (18:30 GMT) for more insight into the central bank's thinking on monetary policy.