Following a two-day policy meeting, the U.S. Federal Reserve announced Wednesday it was cutting its benchmark interest rate by a quarter percentage point, to a range of 1.seven-five percent to 2-percent.
The cut comes just seven weeks after the Federal Open Market Committee went ahead in July with its first rate cut in 11 years.
President Trump, who has been pressuring the Fed to take more sweeping cuts to make the U.S. economy more competitive., immediately took to Twitter following the announcement, saying Fed Chairman Jerome Powell and other Fed policymakers had again failed to meet his expectations.
However with two more meetings this year, analysts predict at least one more rate cut, potentially totaling three or even four this year alone.
During his press conference on Wednesday, Powell echoed those predictions, saying the Fed could make one or two more small cuts in the future.
"As our statement also highlights, though, there are risks to this positive outlook, due particularly to weak global growth and trade developments, and if the economy does turn down, then a more extensive sequence of rate cuts could be appropriate."
Despite the latest cut, Fed policymakers were sharply divided over whether to hold or continue to gradually reduce rates.
The division comes amid mixed views on the relative strength of the U.S. economy.
With unemployment at a 50-year low and rising wages, U.S. consumers have continued to spend money.
However, unresolved trade negotiations between the U.S. and China have weakened business investment, and put the brakes on the U.S. manufacturing sector.
"We're not forecasting a recession, but we are adjusting monetary policy in a more accommodative direction to try to support what is in fact a favorable outlook."
For the time being, Fed officials still forecast moderate economic growth and a strong market going forward.
They remain hopeful that inflation will rise closer to their two-percent target, a level it considers healthy for the U.S. economy.
Lee Seung-jae, Arirang News.