"The Fed is more worried about the labor market and less concerned about inflation at this point," a Glenmede analyst said.

The Federal Reserve made a 0.50 percentage point cut, double the typical reduction. Here's what's behind the decision.

Here’s how inflation and the cost of borrowing have changed since the Fed started raising interest rates in March 2022. After peaking at 9.1% in June 2022, inflation has eased, falling to a three-year low of 2.5% in August, just above the Fed’s 2% target rate.