The Fed's decision will lower borrowing costs from a 23-year high as the central bank pivots to shoring up economic growth.

U.S. stocks closed with modest losses on Wednesday, well off their intraday highs, after the Federal Reserve cut interest rates by 50 basis points, the high side of estimates for its first cut in more than four years.

The Federal Reserve announced the first interest rate cut in four years at its September policy meeting amid progress in slowing down the pace of inflation toward its 2% goal.