Fed cuts interest rates for first time since 2008 but sends confusing signals about what’s next

Washington Post logoStocks fell sharply Wednesday, with the Dow losing 333 points

The Federal Reserve reduced the benchmark interest rate Wednesday for the first time in more than a decade, lowering it by a quarter-point to just below 2.25 percent in an effort to bolster the U.S. economy amid early signs of a global slowdown.

However, the central bank also inadvertently caused confusion about what it plans to do next, disquieting the stock market.

In a news conference, Fed Chair Jerome H. Powell said the Fed was going to do whatever it takes to “sustain the expansion,” but he stopped short of committing to a series of rate reductions as Wall Street and President Trump have demanded.

View the complete July 31 article by Heather Long on The Washington Post website here.