Federal Reserve cuts interest rates

The Federal Reserve on Wednesday approved the second cut this year to its benchmark interest rate. In an attempt to respond to the uncertainty caused by the trade war with China and a slump in U.S. manufacturing, the Fed reduced its key short-term rate by an additional quarter-point to a range of 1.75 percent to 2 percent. Right now, economic expansion looks pretty durable, with a solid job market and steady consumer spending.

How did markets respond? U.S. stocks inched slightly higher Thursday morning, while the European stock markets rose. Fed officials are also monitoring European markets to see how Brexit will affect the global economy as they consider future rate cuts.