The U.S. Federal Reserve on Wednesday cut the benchmark lending rate for the first time since December 2008.

In a Federal Open Market Committee(FOMC) meeting, the Fed decided to slash the benchmark rate by a quarter-point to a target range of two to two-point-25 percent. 

The committee said in a statement that it made the decision in light of the "implications of global developments for the economic outlook as well as muted inflation pressures."

However, Fed Chair Jerome Powell said in a press conference following the reduction that "it's not the beginning of a long series of rate cuts." 

The remarks triggered a drop in markets as investors questioned whether the Fed would cut the rate again at next month's FOMC meeting.