🔗 Share this article Fed Reduces Primary Interest Rate by a Quarter Point The Federal Reserve has announced a reduction in its policy rate by 0.25 percentage points, marking the initial such move so far this year. Market Response Muted Market reaction to the decision and subsequent remarks has been relatively subdued. Key stock markers initially jumped before losing momentum throughout the event. This has left, the Dow steady, the S&P index off by 0.6 percent, and the Nasdaq down roughly 1%. Complex Outlook for Investments Markets tend to like lower interest rates—however a slowing growth could spell trouble. Even as the unemployment rate remains low, Powell has highlighted potential weaknesses to the labor market after its summer slowdown.