The Federal Reserve on Wednesday cut the benchmark interest rate by a quarter-point for the first time since last December.
The key interest rate on short-term loans dropped to about 4.1 percent.
Fed chairman Jerome Powell said risks to the labor market were behind the decision as hiring has slowed and unemployment has ticked higher in recent months.
Fed officials projected two more rate cuts this year. The fed typically raises rates to reduce inflation and lowers rates to spur the economy.
