Thu Nov 07 21:25:25 UTC 2024: ## Fed Cuts Rates Again, But Consumers May Not Notice Much Yet
**WASHINGTON** – The Federal Reserve has cut interest rates for the second time this year, bringing some relief to borrowers but likely not a major shift in their wallets just yet. The central bank lowered borrowing costs by a quarter percentage point on Thursday, following a larger cut in September. This move brings the federal funds rate down to a range of 4.5% to 4.75%.
The Fed’s decision comes as inflation continues to cool, with their preferred measure dropping to 2.1% last month, close to the Fed’s target of 2%.
This easing of the brakes on the economy, following the aggressive rate hikes of last year, aims to make borrowing cheaper and encourage spending. While the initial impact of this latest cut will be minimal, experts predict that further reductions in the coming months could lead to more noticeable savings for borrowers, particularly those struggling with debt.
However, the Fed’s actions are not the only factor influencing borrowing costs. Mortgage rates, for example, have actually increased in recent weeks despite the Fed’s cuts due to rising Treasury yields and economic uncertainty surrounding the recent presidential election.
While credit card rates have begun to dip slightly, they remain close to record highs and are unlikely to fall significantly in the near future unless the Fed dramatically increases the pace of its rate cuts.
The Fed’s next rate decision is scheduled for December 18th, with expectations that another quarter percentage point cut will be announced, bringing the benchmark rate to a range of 4.25% to 4.5%.
The Fed Chair Jerome Powell is expected to address the potential impact of the new Trump administration’s policies on the economy and monetary policy during his press conference later today. However, he has consistently emphasized the Fed’s independence and commitment to data-driven decision-making, rather than political influence.
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