The federal funds rate is the interest banks charge each other for overnight loans. Set by the Federal Reserve, it's a basis for other interest rates.

The Federal Reserve cut interest rates for the first time in four years, announcing a 50 basis point cut and policymakers forecasting additional cuts amid progress in slowing inflation.

Traders on Wednesday upped their bets that the Federal Reserve would continue to aggressively cut interest rates this year after the central bank began its long-awaited easing cycle with an above-average 50-basis point cut.