The Federal Reserve cut interest rates by a quarter point to 4.00%–4.25%. Borrowers with credit cards and adjustable mortgages pay less, but savers earn less on deposits. The Fed is balancing a weakening job market against lingering inflation.
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The Fed just cut interest rates for the first time in almost a year. Here's exactly what that means for your money. The Federal Reserve just lowered its benchmark interest rate by a quarter percent. That brings it down to a range of 4% to 4.25%. Now, before you scroll, here's why you should care. First, if you've got credit card debt, an adjustable mortgage, or personal loan, you could see your interest rates start to drop. But if you're saving money in a bank account, that interest you've been earning might also drop. And for investors, lower rates usually push the market higher, at least in the short term. So why did they do this? Well, the Fed's trying to balance a slowing job market while inflation is still higher than they want. This is literally the decision that touches every single dollar in your life, and this is just part 1. In the next video, I'm going to break down who the Fed is and why they hold so much power over your wallet. Oh, and by the way, I'm hosting a free masterclass to help you start investing and learn how to apply all of this to your own money. So comment now and I'll send you the link to grab your spot.
