/Here’s What the Interest Rate Cut Means for You

Here’s What the Interest Rate Cut Means for You

The Federal Reserve cut interest rates Wednesday, for the first time in more than ten-and-a-half years.

For millions of Americans that likely means a reprieve in rising borrowing cost; however, that benefit comes at a price: saving account rates may fail. (CNBC)

The Federal Reserve’s decision to cut interest rates 25 basis points for the first time in over a decade marked a dramatic shift in monetary policy.

It will be felt by Americans across the board.

After raising the federal funds rate nine times in three years, with the last move coming in December as financial markets were melting down, concerns about a slowing economy caused the Federal Open Market Committee and Chairman Jerome Powell to reverse course.

Now, interest rates are historically low, which leaves the central bank with little wiggle room in the event of a recession or if the economy stumbles. The current target range for its overnight lending rate is 2% to 2.25%.