The Federal Reserve announced its first rate cut of the year, bringing its key interest rate down to a range of 4% to 4.25%.

After a year of sitting on the sidelines, the Federal Reserve finally cut short-term interest rates by a quarter-point.

"The Fed opted for the most probable outcome this afternoon, cutting 25 basis points. Risk assets and treasuries appear to be focused on the Fed's expectation for two more cuts this year."