The Fed's decision to cut interest rates by 50 basis points reflects its growing confidence in taming inflation and a renewed focus on supporting the job market.

If the Fed cuts interest rates today, borrowers will likely see interest rates ease off their peaks on things like credit cards and auto loans.

The Fed announced a cut of 50 basis points and lowered its key rate to roughly 4.8 per cent, Associated Press ( AP) reported. This is down from a two-decade high of 5.3 per cent, where it had stood for 14 months, as it struggled to curb the worst inflation streak in four decades.