The reduction lowers the federal funds rate — what banks charge each other for short-term loans — to between 3.5% and 3.75%, down from its prior range of 3.75% to 4%. The Fed's decision marks the third consecutive rate cut since September, lowering the federal funds rate by a total of 0.75 percentage points this year.

Kevin Hassett, President Donald Trump’s top economic adviser, on Sunday dismissed concerns that he would simply push Trump’s agenda if he’s chosen as the next Fed chair.