Federal Reserve Chairman Jerome Powell announced Tuesday that the Fed will be cutting interest rates for the second time this year. The decision cut the federal funds rate to a range between 1.75-2%. This range marks a benchmark rate reduction of 25 basis points. Powell cited weakening exports and low inflation as the reasoning behind this interest rate cut. This decision was voted in favor by 7 of the 10 Fed board members, with the other three preferring a 50-basis point cut.
President Trump remained critical of Powell following the decision tweeting “Jay Powell and the Federal Reserve Fail Again.” Fed officials noted that they are open to yet another rate cut later this year if the economy weakens. The Dow fell about 150 points after this announcement as investors were hoping for a larger rate cut.