The Latest Breaking News from Jerome Powell

"There’s very little growth, if any, in the supply of workers. And at the same time, demand for workers has also come down quite sharply," the Fed chair said.

The Federal Reserve’s policy setup is “bullish for bonds, bearish for the dollar, and neutral for equities in the near term," according to TIAA Wealth Management’s chief investment officer.

Central bank moves to set rates at range between 4 and 4.25% but decision unlikely to satisfy Donald Trump

The central bank’s widely-expected 0.25% cut comes amid a cooling labour market, which has stalled economic growth.

The rate cut comes as Trump stages an unprecedented assault on independence of the Federal Reserve

Stephen Miran, Trump’s pick to join the Fed, dissented against the group, voting in favor of the stronger half-point cut.

Rates now stand at a range of 4% to 4.25% as reduction comes amid concern of political pressure on independent central bank from Trump

Traders are largely expecting the Fed’s Federal Open Market Committee to lower the Fed funds rate trading range by 25 basis points.

The Federal Reserve is widely expected to lower interest rates by 25 basis points later on Wednesday, bringing the federal funds target to 4.00%-4.25%—a policy shift that, while highly anticipated, may offer little fuel to a stock market already trading at all-time highs if history is any guide.