🔗 Share this article Fed Reduces Primary Benchmark Rate by 25 Basis Points America's Federal Reserve has implemented a cut in its key interest rate by 25 basis points, marking the initial such move so far this year. Investor Response Muted Market reaction to the move and following remarks has been fairly muted. Key stock markers at first rose before giving up those gains as the press conference continued. This has left, the Dow steady, the S&P 500 dropping 0.6%, and the Nasdaq down roughly 1%. Complex Perspective for Markets Investors generally favor rate cuts—though a weakening economy is also a concern. And while the jobless rate holds steady, Fed Chair Jerome Powell has stressed "downside" risks to the labor market after its summer slowdown.