Wall Street reacts wildly as Fed makes interest rate decision despite data blackout

The Federal Reserve cut interest rates for the second time this year. 

Officials announced a modest quarter–point reduction that will lower borrowing costs for millions of Americans. 

All three major indices –– the Dow Jones, S&P 500, and Nasdaq ––have remained in the green since the announcement. 

The Fed has a dual mandate to lower inflation and increase job growth through the government's borrowing rates.

Rates are used as a blunt tool, swinging higher when prices climb to slow down businesses and spending, and plunging when unemployment accelerates.

The bank wants to force the inflation rate down to two percent.  

But the Fed's governors are acting during a data blackout triggered by the ongoing government shutdown, leaving policymakers to make their call without the usual report on the jobs market.

And America's job landscape doesn't look like it's in great shape. Several major corporations –– including Target, Walmart, Amazon, UPS, and General Motors –– have announced mass layoffs in the past month. 

The Fed at least had fresh inflation data to work with after statisticians were called back to hastily compile the delayed report — released nine days late on Thursday. 

Inflation came in at three percent, slightly lower than expected but still the highest reading so far this year.  

This is a breaking news story. Updates to come.