Wed Nov 06 18:40:00 UTC 2024: ## Fed Expected to Cut Interest Rates Again, Providing Some Relief for Consumers
**WASHINGTON, D.C. -** The Federal Reserve is expected to cut interest rates for the second time this year on Thursday, November 7th, according to economists. This decision comes less than two months after the Fed’s surprise jumbo cut in September.
The Fed is anticipated to reduce borrowing costs by 0.25 percentage points, bringing the federal funds rate down to a range of 4.5% to 4.75%. This follows the Fed’s decision to ease off the brakes after inflation hit a 40-year high during the pandemic.
While the initial benefit of this rate cut may be small, experts anticipate further cuts in the coming months, leading to larger savings for borrowers.
“Once a few more cuts happen over the next few months, the impact will add up to something that moves the needle for the average person struggling with debt,” said Matt Schulz, LendingTree chief credit analyst.
The Fed will announce its decision at 2 p.m. ET on Thursday, followed by a press conference with Fed Chair Jerome Powell at 2:30 p.m. The next Fed rate decision is scheduled for December 18th.
Despite the expected rate cuts, mortgage rates have risen over the last month, with the average interest rate on a 30-year fixed-rate loan sitting at about 6.72%. This is due to a combination of factors, including concerns about rising U.S. debt and the presidential election.
While credit card rates are slightly lower than their record highs, borrowers should not expect dramatically reduced credit card bills anytime soon. The impact of these cuts on consumer spending will be gradual.
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