FOMC lowers federal funds rate by 25 basis points to 2% - 2.25% range as expected

• Fed leaves the target range for fed funds rate steady at 2% - 2.25%.
• Cites implications of global developments for US economic outlook.
• US Dollar Index jumps above fresh two-month high above 98.20.

Following its 2-day meeting, the Federal Open Market Committee announced that it lowered the benchmark interest rate by 25 basis points to the target range of 2% - 2.25% in a widely expected decision. Jerome Powell, Chair of the Board of Governors of the Federal Reserve System, is scheduled to deliver his comments on the monetary policy in a press conference at 18:30 GMT. 

With the initial reaction, the US Dollar Index gained traction and rose to its highest level since May 23 at 98.32.

Key highlights from the press release (via Reuters)

"In light of the implications of global developments for the economic outlook as well as muted inflation pressures, the Committee decided to lower the target range for the federal funds rate to 2 to 2-1/4 percent."

"As the Committee contemplates the future path of the target range for the federal funds rate, it will continue to monitor the implications of incoming information for the economic outlook and will act as appropriate to sustain the expansion, with a strong labor market and inflation near its symmetric 2 percent objective."

"In determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess realized and expected economic conditions relative to its maximum employment objective and its symmetric 2 percent inflation objective."