The bank lowered its one-week repo rate 325 basis points from 19.75 percent to 16.50 percent.
Finance and Treasury Minister Berat Albayrak says over $10 billion in foreign investments entered Turkey since May, and the Turkish economy will grow "positively this year."
The Fed's move came despite President Donald Trump's attacks in recent weeks on its rate hikes and on Chairman Jerome Powell personally.
The US Federal Reserve kept the benchmark lending rate unchanged, highlighting the continued strong performance of the economy but also pointing to a slowdown in business investment.
The second rise in three months comes in the wake of steady economic growth, strong job gains and confidence that inflation is rising to the central bank's target.
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