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."

Collins said that while core inflation pressures remain elevated, she is increasingly confident inflation is moving back to the Fed's 2% target.

Markets strengthened bets the Fed would deliver a quarter-point rate cut at next month’s policy meeting after data showed consumer price inflation edged down to 2.4 per cent in September

Most investors were expecting the Federal Reserve to cut rates by 0.25% or 0.50%. The move was already well-baked into the market, so it’s not surprising to hear they went for the full 0.50%. But this is only the beginning of a series of cuts expected over the next year or two.

Those who need to generate low-risk income out of their savings can earn more than they could have done even a few weeks ago.