Wall Street Reacts as ‘Hawkish’ Fed Rate Cut Sends Stocks Lower
- Central bank eases as expected, mixed on path for policy
- Dissents reach three as views mixed among Fed officials
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The Federal Reserve cut interest rates for the second straight meeting, but projections for the path of policy diverged, leaving equity markets on edge.
The central bank lowered rates 25 basis points, noting that trade policy and slowing global growth warranted the cut even as the U.S. economy remains strong. Officials split on the need for further easing, with five seeing no change in rates by the end of the year, five wanting one more cut and seven expecting two cuts.