Federal Reserve Lowers Interest Rates, How Will It Affect You?
- The Federal Reserve is predicted to cut interest rates today, moving the federal funds rate to a range of 4.5% to 4.75%.
- Experts believe that while initial benefits from this cut will be small, further reductions in the coming months could provide more significant relief.
- Although rates may lower, mortgage rates have recently increased, stressing consumers who expect more immediate benefits.
On November 7, the Federal Reserve is anticipated to announce a rate cut, the second reduction this year, following a significant decrease in September. Economists predict that the Federal Reserve will lower borrowing costs by 0.25 percentage points, adjusting the federal funds rate down to a range of 4.5% to 4.75%. This adjustment aims to provide relief to consumers but is expected to have only a minimal immediate impact. More substantial benefits are anticipated if further cuts occur in the upcoming months. Analysts project that the Federal Reserve may continue rate cuts at each meeting through mid-2025, ultimately reducing rates to around 3.4%. Despite these cuts, mortgage rates remain high, having increased since the September cut. Experts suggest that while there might be gradual decreases in credit card rates and borrowing costs, substantial relief for consumers struggling with debt will take time.