Federal Reserve Cuts Interest Rates, Markets React

The U.S. Federal Reserve has cut interest rates by 25 basis points, bringing them to a target range of 4.25%-4.5%, but indicated fewer future reductions than previously expected, causing significant turmoil in the stock markets. Following this announcement, U.S. markets experienced a sharp sell-off, with the Dow Jones dropping over 1,000 points, reflecting investor disappointment in the Fed's cautious outlook. Meanwhile, the Bank of Japan maintained its rate at 0.25%, leading to a decline in the yen. Investors had anticipated a more aggressive approach from the Fed, which contributed to the market's negative reaction. Additionally, Micron's shares fell sharply after the company provided weaker-than-expected revenue guidance, further exacerbating market instability. Concerns about global risks, including a potential trade war, continue to weigh heavily on investor sentiment as they navigate these uncertain economic conditions.