The Federal Reserve cut interest rates by 25 basis points, and Powell said this was a risk management cut

At 2:00 AM Beijing time on September 18th, the Federal Reserve announced a 25 basis point interest rate cut, lowering the federal funds rate from 4.25% to 4.50% to 4.00% to 4.25%, in line with market expectations. The Fed's announcement triggered a sharp market reaction, with the three major US stock indices briefly surging before quickly plunging. The US dollar index plummeted, briefly hitting a new low since 2025, before rebounding sharply, turning a decline into an upward trend.