The Fed cut interest rates slightly on Wednesday to steady the economy amid a weakening job market, as a long government shutdown has clouded its view of the economy.

Concerns about a weakening labor market may outweigh worries about rising inflation, tipping the Fed toward another rate cut, economists say.

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.

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.