Most traders expect the Fed to make a big initial rate cut, but one strategist says it's not necessary amid low unemployment and historically low rates.

The Federal Reserve lowered its benchmark interest rate by a half percentage point Wednesday, in an aggressive start to a policy shift aimed at bolstering

By Lewis Krauskopf, Prinz Magtulis, Pasit Kongkunakornkul and Vineet Sachdev NEW YORK (Reuters) -How stocks, bonds and the dollar perform after the Federal Reserve kicks off its rate-cutting cycle could depend on one factor more than most: the health of the U.

The central bank will almost certainly lower interest rates when it concludes its meeting on Wednesday. But there is still uncertainty over how big the cut will be.

The U.S. dollar has been sliding in the run-up to a widely expected interest-rate cut from the Federal Reserve on Wednesday and, depending on the size of the Fed’s move, it could end up weakening further — or it could be a buying opportunity.

The U.S. dollar fell to a more than one-year low versus the yen on Monday, as expectations increased that the Federal Reserve could deliver a supersized cut to interest rates later this week. The Fed had been widely expected to announce at least a 25-basis-point cut to interest rates at the conclusion of its Sept.