Federal Reserve policy makers lowered their main interest rate for a second time this year while splitting over the need for further easing, caught between uncertainty over trade and global growth and a domestic economy that’s holding up well.

The benchmark rate was lowered by a quarter percentage point to a range of 1.75% to 2% “in light of the implications of global developments for the economic outlook as well as muted inflation pressures,’’ the Federal Open Market Committee said in a statement on Wednesday in Washington. It continued to characterize the U.S. labor market as “strong” with “solid” job gains.

Treasuries held on to gains, the dollar rallied and U.S. stocks extended losses after the Fed’s announcement. The decision didn’t alter expectations among futures traders for another 25-basis point cut this year.

Chairman Jerome Powell has been under relentless public pressure to reduce rates from President Donald Trump, who returned to Twitter minutes after Wednesday’s decision to say policy makers had failed again by not cutting more.

Fed officials maintained their pledge to “act as appropriate to sustain the expansion."

“Although household spending has been rising at a strong pace, business fixed investment and exports have weakened,’’ the FOMC said.

Five officials wanted to keep rates unchanged, while five saw a quarter point as appropriate this year and seven wanted a half point.

The Fed Board also took a separate step to calm this week’s strains in money markets and avert harm to the economy, lowering the interest rate on excess reserves to 1.8%. Earlier Wednesday the Fed injected $75 billion of liquidity to ease a crunch, and key rates pulled back from elevated levels.

Global Risk

Powell is trying to sustain the expansion despite slowing global growth that’s been chilled by uncertainty over U.S. trade policy, fanning fears of recession. Manufacturing has been hit hard, particularly in Germany, which prompted the European Central Bank to ease policy last week.

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