The Federal Reserve cut the interest rate by 50 basis points – and the market RAISED its rates by the same amount. The Fed said "Down" and the markets said "Nope."

Kashkari said that the current stance of monetary policy remains restrictive of growth, although by how much is unclear.

Financial markets are highly sensitive to Fed policy, with traders expecting a rate cut in Nov. despite recent inflation. Read my latest update on the Fed here.

The Federal Reserve, the central banking system of the United States, wields a significant influence on the country’s economy. Its decisions on interest rates can ripple through everything from the stock market to the average American’s mortgage payment.

The Federal Reserve slashed interest rates to near zero in 2020 in an emergency response to the coronavirus pandemic. The Fed's action was intended to help Americans struggling financially amid the outbreak by making it more affordable to borrow money.

It’s been a month since the Federal Reserve shifted from fighting inflation with high interest rates to supporting the job market with the first in what is expected to be a series of rate cuts. The impact?

Many Americans have been priced out of purchasing a home or making a move for years now amid elevated mortgage rates, sky-high home prices, and squeezed budgets due to inflation.