For all the nail-biting about the economy over the past year, investors had it easy: a 5% yield on short-term U.S. debt, one of the safest investments in the world. Now, the times they are a-changin’—again.

In the aftermath, economists and traders moved to adjust their forecasts and wagers to account for the Fed’s new narrative. Goldman Sachs Group projected a longer string of consecutive cuts, while JPMorgan Chase’s economists reiterated their call for another half-point reduction in November even as they pointed to jobs data as key to their view.

The Federal Reserve cut interest rates by half of a percentage point on Wednesday, kicking off what is expected to be a steady easing of monetary policy with a larger-than-usual reduction in borrowing costs that followed growing unease about the health of the job market.

The Federal Reserve has cut interest rates for the first time since 2020. The decision to cut rates by a half a percentage point was the more aggressive option, putting the Fed’s benchmark rate to a range between 4.

The Federal Reserve cut interest rates on Wednesday for the first time since March 2020, lowering the Fed funds rate by 50 basis points. The decision to go with a larger 50 basis point rate cut, instead of the more common 25 basis point option,

U.S. stocks briefly shot higher on Wednesday after the Federal Reserve cut interest rates by 50 basis points, the high side of estimates for its first cut in more than four years. Citing a "greater confidence" that inflation is moving toward the central bank's 2% target,

The Federal Reserve on Wednesday announced an interest rate cut of 0.5%, bringing rates down from their previous 23-year high. CBS News contributor Javier David has more on what that means for you.

Market participants were uncertain about the size of rate cut prior to the Fed meeting, laying the groundwork for volatility on the markets.