The Fed reduced its key policy rate by 0.25 percentage point in a 9–3 vote, which markets viewed as a “hawkish cut” because officials also hinted that future easing will be slower.
This is the third straight 25 bps cut this year, totaling 75 bps of easing over the last three meetings. US stocks jumped after the announcement, with major indices like the Dow rallying and Treasury yields falling as traders priced in a slower but ongoing easing cycle.
For global markets (including India and forex pairs like EUR/USD), the combination of a cut but hawkish tone tends to support the dollar initially, with volatility around the release and press conference.
