The federal funds rate is the interest banks charge each other for overnight loans. Set by the Federal Reserve, it's a basis for other interest rates.

The Fed's decision will lower borrowing costs from a 23-year high as the central bank pivots to shoring up economic growth.

The Fed cut its benchmark interest rate by an unusually large half point on Wednesday. High interest rates for the last two years have helped tame inflation but it’s also had some negative impacts on American consumer finances. The media could not be loaded, either because the server or network failed or because the format is not supported.