The U.S. Federal Reserve executed a quarter-point interest rate cut amid internal divisions, as liquidity worries surfaced in money markets, prompting the central bank to restart modest Treasury security purchases.

This decision, influenced by the absence of government economic data due to the federal shutdown, reflects differing viewpoints among policymakers regarding future rate cuts.

Chair Jerome Powell has signaled that further rate reductions are uncertain, as inflationary pressures have been milder than anticipated. Significant concerns about the job market remain, despite moderate economic growth indicators.

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