In a closely watched decision, the U.S. Federal Reserve opted for a larger 50-bps reduction in interest rates yesterday, rather than a more traditional 25-bps rate cut.

BofA Global Research raised its forecast for the Federal Reserve's anticipated interest rate cuts for the remainder of this year to 75 basis points, after the U.S. central bank kicked off a widely expected series of reductions on Wednesday.

All eyes are rivetted on the Fed on Wednesday as the rate-setting committee members are left with the unenviable task of satiating everyone with the rate move.

The Fed cut interest rates by 50 bps in September, anticipating no further meetings until November. Check out my recommendations for investors.

The U.S. economy is not in a recession but labor-market weakness might worry the Federal Reserve enough to cut interest rates by 50 basis points on Wednesday, former Fed economist Claudia Sahm said.

Republican presidential candidate Donald Trump said on Thursday the U.S. Federal Reserve's decision to cut interest rates by half of a percentage point was "a political move." "It really is a political move.

Trump attributed the rate reduction to either a "very bad" economy or to the Fed's "playing politics" to help Democrats.

Major brokerages expect the U.S. Federal Reserve to lower interest rates by 25 basis points at the end of its two-day monetary policy meeting that starts on Tuesday, even as financial markets price in a good chance of policymakers starting the easing cycle with an outsized rate reduction.