The Fed's rate cut was in line with market expectations, but the extent of the cut was a surprise to some. This was the first rate cut by the Fed in four years, and it also put an end to the fierce market debate over whether to cut by 25 basis points or 50 basis points.

After the Fed announced a 50 basis point rate cut, Republican presidential candidate Trump mocked it as a sign that the U.S. economy was in a bad state, and suggested that the Fed was playing politics.

Trump said: "Assuming they are not playing politics, such a large cut shows that the economy is in very bad shape."