And for Canadians waiting for lower rates, those same global forces are on their way, and will likely force Bank of Canada Governor Stephen Poloz to follow suit. "The median is for no more cuts after this one, but there are seven members that think there's one more cut for the rest of the year".
Markets - which have been predicting a series of cuts and, until recently, expected a larger half point cut - tumbled on the news.
Even though the economy looks resilient, the president has insisted that the Fed slash its benchmark rate more deeply - even to below zero, as the European Central Bank has done - part to weaken the U.S. dollar and make American exports more competitive.
Japan's central bank on Thursday held overnight interest rates at minus 0.1 per cent, its target for ten-year bond yields at around zero per cent, and the pace of its asset purchases at a pace of ¥80tn ($740bn) a year.
But, Mr Powell said, "what we think we are facing here is a situation which can be addressed, which should be addressed, with moderate adjustments to the federal funds rate", noting that the United States labour market was strong and inflation was likely to return to the Fed's 2 per cent annual goal.
The president tweeted the Fed and its chair had failed, saying, "No "guts", no sense, no vision.". That was particularly the case when going out of the way not to repeat the mid-cycle adjustment language. He said he and his colleagues will continue to conduct monetary policy without political considerations by using their best judgment based on facts, evidence and objective analysis.
He said the bank's decision not to make the kind of deep cuts Trump has been demanding is because much of the economy remains robust. "There is a piece of this that we really can't address", said Mr. Powell. "The labour market is still strong".
The rate cut, Powell said, was decided after global growth slowed and trade tensions worsened in the past months. The disparity between the market and the Fed's view would thus mean that we could continue to see the greenback and equity markets being sensitive towards the abovementioned data and situation updates into year-end.
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"The only problem is a 25 basis-point cut was already expected, and the comments and dot-plot forecasts were not as dovish as the market hoped".
He did, however, emphasize U.S.
The International Monetary Fund said in July that global trade slowed in the first quarter of 2019 to the lowest level since 2012.
"It won't act immediately because these kinds of things take a little while to trickle through the economy and to play out, but this does indicate ... that the long-term trajectory for the Bank of Canada is a rate cut not a rate increase". Likewise, with Asia markets, we are expecting most of the regions to come online with moderate gains with the Fed support.
"In the short term, this hawkish cut should still see the dollar well-bid, given that the path of interest rates outlined by the Fed is not close to that priced into the markets", said John Veils, Americas FX and macro strategist at BNY Mellon. That was a view Powell was anxious to dispel. As I will explain shortly, we took this step to help keep the USA economy strong in the face of some notable developments, and to provide insurance against ongoing risks.
When it comes to rate cuts by the Bank of Korea, .
But some in the market had expected the BoJ to signal a stronger chance of more stimulus in the context of central banks easing globally to boost growth. Lee said it's important to monitor external risks, such as the U.S. Officials split on the need for further easing, with five seeing no change in rates by the end of the year, five wanting one more cut and seven expecting two cuts.