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

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.

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