America News Agency

The U.S. Federal Reserve, as expected, cut the federal funds rate by 25 basis points to a range of 3.5–3.75 percent, signalling that its easing cycle is ending for now.

Fed Chair Jerome Powell said during the post-meeting press conference that the rate cut put the central bank in a comfortable position regarding interest rates.

Powell added, “We are in a good position to wait and see how the economy evolves,” while also noting that President Donald Trump’s tariffs have fueled inflation.

The U.S. dollar index fell to 98.54 on Thursday, its weakest level since 21 October.

Japan’s Nikkei 225 Index, which started the day positive, dropped 0.58%, while the Topix Index fell 0.52%. South Korea’s Kospi Index also reversed direction after the Fed decision, declining 0.56%, with the smaller-cap Kosdaq Index losing 0.36%. Hong Kong’s Hang Seng Index rose 0.1%, while mainland China’s CSI 300 Index edged slightly lower.

Shares of ZTE Corp slid more than 5% following a Reuters report that the Chinese telecom equipment manufacturer may need to pay the U.S. government over $1 billion to settle allegations of bribery abroad.

Australia’s S&P/ASX 200 Index traded flat.

In addition to Wednesday’s rate decision, the Fed also announced that it would resume purchasing $40 billion in Treasury bills starting Friday. As a result, yields on short-term U.S. Treasury securities fell.

The Fed statement also addressed the weakness in the labor market and removed language describing unemployment as “remaining low,” indicating a shift in focus from inflation to supporting the economy.

On Wednesday in the U.S., the Dow Jones Industrial Average jumped 1.1% following the Fed decision, the S&P 500 gained 0.7%, and the Nasdaq Composite rose 0.3%.