The Federal Reserve just cut the Federal rate by 0.5%. What does this mean for you?
It depends.
The Federal rate affects the prime rate- the interest rate banks charge customers to borrow money. While this generally leads to lower rates on loan APRs and could lead to reduced credit card interest rates.
It also usually leads to more investing, increasing the price of stocks.
The Federal rate does not affect mortgage rates.
The reason why the Federal Reserve decreases the rate is to stimulate the economy. Spending is encouraged. Borrowing is encouraged.
How will this adjustment affect your spending?