‘Gradual Recalibration:’ The Fed Cuts Rates By 0.25%, Just as Economists Predicted. Here’s What It Means for Your Wallet.

On Thursday, the Federal Reserve’s Federal Open Market Committee (FOMC) announced that it would lower the federal funds rate by 25 basis points (bps), or 0.25%, because of “somewhat elevated” inflation and an unemployment rate that “moved up but remains low.”

The rate is now 4.5% to 4.75%, down from 4.75% to 5%. A lower federal funds rate, or borrowing rate that banks charge each other, means lower borrowing costs on credit cards and personal loans — so there’s a ripple effect that could directly affect your wallet. Banks decide individually how to respond to rate cuts.

The news aligned with analyst expectations.

“We continue to expect the Fed to ease

→ Continue reading at Entrepreneur

More from author

Related posts

Advertisment

Latest posts

Mnuchin on whether he would serve in a second Trump admin | CNN Business

So, the Fed cut rates? It’s still not the best time to buy a house 01:53 Now playing ...

‘Complete chaos’: CNN reporter breaks down Germany’s political crisis | CNN Business

So, the Fed cut rates? It’s still not the best time to buy a house 01:53 Now playing ...

Books like The Handmaid’s Tale and 1984 are flying off the shelves after the presidential election | CNN Business

(CNN) – Margaret Atwood’s “The Handmaid’s Tale,” a novel set in a totalitarian society, has shot to the top of Amazon’s bestselling books...