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Here’s how the Fed rate cut affects you

September 28, 2019

From the CNBC website

The Federal Reserve’s decision to cut interest rates by a quarter point for the second time in a decade is a double-edged sword for many Americans.

On the one hand, the Federal Open Market Committee and Chairman Jerome Powell have expressed concerns about a slowing economy and the ongoing trade war, which could raise prices on many of the products you buy.

However, President Donald Trump has repeatedly argued that lower borrowing costs would give the economy a boost and will put more money in your pocket. Just last week the president tweeted that the central bank should cut interest rates to zero or even set negative interest rates.

For consumers, lower rates do mean cheaper loans, which can impact your mortgage, home equity loan, credit card, student loan tab and car payment.

On the flip side, consumers likely will earn less interest on their savings accounts, and in some cases, lose buying power over time.

Here’s a breakdown of how it works:

From → Finance

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