The Federal Reserve cut interest rates by half a percentage point, signaling a shift in monetary policy and boosting confidence in the economy. Read what investors need to know.

The Federal Reserve handed down a large interest rate cut this week, dialing back the central bank's fight against inflation and signaling welcome relief for borrowers. It remains to be seen, however,

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