Breaking: Fed cuts rates but signals pause – USD jumps

-- more to come

Follow all the Fed updates live

The Federal Reserve was expected to cut interest rates for the first time in over a decade. A 25 basis point reduction was priced in by markets. Investors were split between the view that the Fed will only slash rates once and the one suggesting that this is the first rate cut out of many. 

Low inflation and trade tensions have been behind Chair Jerome Powell's signal of the upcoming monetary stimulus. However, employment, growth, and consumer confidence have been upbeat.

In the days leading to the decision, the US dollar has been gaining some ground, but the moves have been uneven. 

See Fed Preview: The currencies to trade in each of these four scenarios