U.S. economy

The quarter-percentage-point cut will lower borrowing costs for households and businesses. The move is an effort to prolong the decade-old economic expansion in the face of rising headwinds.

The quarter-point cut signals growing concern at the Federal Reserve about a slowdown in the economy amid the trade war with China. The Fed last cut rates in 2008 and raised them as late as December.

The Federal Reserve chairman is testifying before Congress this week about challenges the economy faces. Stocks rallied in anticipation the central bank will lower interest rates later this month.

President Trump is eager to tout a fast-growing economy, boosted by the tax cuts he pushed through Congress. That makes Friday's report on gross domestic product a highly anticipated news event.