Federal Reserve policymakers lowered their main interest ratefor a second time this year while splitting over the need forfurther easing, caught between uncertainty over trade and globalgrowth and a domestic economy that's holding up well.

The benchmark rate was lowered by a quarter percentage point, toa range of 1.75 percent to 2 percent, "in light of the implicationsof global developments for the economic outlook as well as mutedinflation pressures,'' the Federal Open Market Committee (FOMC)said in a statement onWednesday 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. stocksextended losses after the Fed's announcement. The decision didn'talter expectations among futures traders for another 25 basis point(bps) cut this year. Chairman Jerome Powell has been underrelentless public pressure from President Donald Trump to slashrates.