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WASHINGTON (AP) 鈥� The Federal Reserve on Wednesday cut its benchmark interest rate by an unusually large half-point, a dramatic shift after more than two years of聽聽helped tame inflation but that also made borrowing painfully expensive for American consumers.

The rate cut, the Fed鈥檚 first in more than four years, reflects its new focus on bolstering the job market, which has shown clear signs of slowing. Coming just weeks before the presidential election, the Fed鈥檚 move also has the potential to scramble the economic landscape just as Americans prepare to vote.

The central bank鈥檚 action lowered its key rate to roughly 4.8%, down from a two-decade high of 5.3%, where it had stood for 14 months as it struggled to curb the worst inflation streak in four decades. Inflation has tumbled from a peak of 9.1% in mid-2022 to a three-year low of聽, not far above the Fed鈥檚 2% target.

The Fed’s policymakers also signaled that they expect to cut their key rate by an additional half-point in their final two meetings this year, in November and December. And they envision four more rate cuts in 2025 and two in 2026.

More money news: Wholesale inflation mostly cooled last month in latest sign that price pressures are slowing

In a statement, the Fed came closer than it has before to declaring victory over inflation: It said it 鈥渉as gained greater confidence that inflation is moving sustainably toward 2%.鈥�

Though the central bank now believes inflation is largely defeated, many Americans聽聽with still-high prices for groceries, gas, rent and other necessities. Former President Donald Trump blames the Biden-Harris administration for sparking an inflationary surge. Vice President Kamala Harris, in turn, has charged that Trump鈥檚 promise to slap tariffs on all imports would raise prices for consumers even further.

Rate cuts by the Fed should, over time, lower borrowing costs聽, auto loans and credit cards, boosting Americans鈥� finances and supporting more spending and growth. Homeowners will be able to refinance mortgages at lower rates, saving on monthly payments, and even shift credit card debt to lower-cost personal loans or home equity lines. Businesses may also borrow and invest more.

Average mortgage rates have already dropped to an 18-month聽, according to Freddie Mac, spurring a jump in demand for refinancings.

The Fed鈥檚 next policy meeting is Nov. 6-7 鈥� immediately after the presidential election. By cutting rates this week, soon before the election, the Fed is risking attacks from Trump, who has argued that lowering rates now amounts to political interference. Yet Politico has reported that even some key Senate Republicans who were interviewed have expressed support for a Fed rate cut this week.

More from the Fed: Powell says Federal Reserve is more confident inflation is slowing to its target

The central bank鈥檚 officials fought against high inflation by raising their key rate 11 times in 2022 and 2023. Wage growth has since slowed, removing a potential source of inflationary pressure. And oil and gas prices are falling, a sign that inflation should continue to cool in the months ahead. Consumers are also聽聽against high prices,聽聽as Target and McDonald鈥檚 to dangle deals and discounts.

Yet after several years of strong job growth, employers have slowed hiring, and the unemployment rate聽聽nearly a full percentage point from its half-century low in April 2023 to a still-low 4.2%. Once unemployment rises that much, it tends to keep climbing. Fed officials and many economists note, though, that the rise in unemployment this time largely reflects an influx of people seeking jobs 鈥� notably new immigrants and recent college graduates 鈥� rather than layoffs.

At issue in the Fed鈥檚 deliberations is how fast it wants to lower its benchmark rate to a point where it鈥檚 no longer acting as a brake on the economy 鈥� nor as an accelerant. Where that so-called “neutral” level falls isn鈥檛 clear, though many analysts peg it at 3% to 3.5%.