Interest Rates are on the Chopping Block

It came as a surprise to almost no one that the Federal Reserve decided to cut interest rates last month. This marks the first rate cut since March of 2020, and it’s a big one. Rates now sit in the 4.75% to 5% range, which is a significant step down from the 5.25% to 5.5% range they have been in for over a year now, which was the highest rates we have seen since 2001.

Why it matters: While these rates may just seem like arbitrary percentages to some, they have significant trickle down impacts on everyday life for Americans, especially in these areas:

• Housing/Mortgage Rates

• Car Loan Rates

• More Accessible Credit

• Boost in Job Market

• Drop in High-Yield Savings Accounts

• Jump in Stocks