US: Stocks end lower after Federal Reserve cuts interest rates, Dow -1.2%

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US: Stocks end lower after FederalReserve cuts interest rates, Dow -1.2%

[NEW YORK] Wall Street stocks finished decisively lower on Wednesday after the Federal Reserve cut interest rates but offered mixed signs on what the move meant for future monetary policy.

Stocks had initially edged lower after the Fed announced at 1800 GMT that it planned a 25-basis-point interest rate cut.But stocks fell sharply midway through a subsequent news conference after Fed Chairman Jerome Powell said the US central bank did not expect a"lengthy cutting cycle."But Mr Powell then went on to say the Fed was not committed to a single cut.

"The bottom line is the market is concerned we might not be getting as many rate cuts as they thought."

 

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