The Federal Reserve cut the federal funds target rate by 50 basis points to a range of 4.75% to 5.00%. It's the central bank's first rate cut in four years.

In its statement, the Federal Open Market Committee (FOMC) states, "The Committee has gained greater confidence that inflation is moving sustainably toward 2 percent, and judges that the risks to achieving its employment and inflation goals are roughly in balance." The statement adds that "the economic outlook is uncertain."

Based on the projections, Fed members see two more 25 basis point cuts this year, followed by four more in 2025.

In the video above, Yahoo Finance Federal Reserve Reporter Jennifer Schonberger reports the breaking details.

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This post was written by Stephanie Mikulich.