Policymakers led by Fed Chairman Jerome Powell voted 8-2 in favor of a small cut in the federal funds rate, and recommitted to their promise to "act as appropriate" to sustain the country's longest economic expansion in history.
Interest rates, which affect the cost of borrowing for credit cards and mortgages, are now set to hover between 2% and 2.25%.
Policy makers in their statement said they would "continue to monitor" incoming data and would act as needed to support the economy. Investors interpreted that as a signal that the central bank may be prepared to cut further, if needed, should uncertainties persist.
The Fed will still need to justify the decision move forward with a rate cut given some prevailing strength in the economy. Since their last meeting in June, the job gains, retail sales and economic growth have been stronger than thought.
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