Stocks and bonds initially rallied after the central bank cut interest rates on Sept. 17, but began giving up those gains before Federal Reserve Chair Jerome Powell started his post-meeting press conference.

The Fed Reserve cut its key interest rate this week as it continues driving in the dark amid the ongoing shutdown.

A policy divide within the central bank and a lack of federal government data may put another interest rate cut out of reach this year, Fed Chair Powell said, as he acknowledged the threats that officials see to the job market but also the risky nature of making further rate moves without a fuller picture of the economy.

The U.S. central bank is widely expected to cut interest rates for the second meeting in a row even though the government shutdown is obscuring officials’ view of the economy.

Follow MarketWatch's live coverage of Wednesday's Federal Reserve decisions, after the central bank cut interest rates by 25 basis points and said it's ending its program of "quantitative tightening" on Dec.

The Japanese yen tumbled against the U. dollar on Thursday after the Bank of Japan adopted a less hawkish tone than traders expected, while the greenback was boosted after Federal Reserve Chair Jerome Powell on Wednesday said a rate cut in December was not guaranteed.