Banking
Fed lowers interest rates with surprising jumbo half-point cut
6 min read
The Federal Reserve and Your Money
The Fed just cut interest rates for the first time since 2020. Here are the most important steps you should take with your wallet.
The latest on the Fed from Bankrate’s experts
“The Fed was behind the curve when raising interest rates to corral inflation and the lesson appears to have been learned. By making a larger half-point interest rate cut right from the get-go, the Fed is taking out some insurance against being behind the curve again.”
Fed Lowers Interest Rates With Surprising Half-Point Cut
In a more aggressive move than expected, the Federal Open Market Committee (FOMC) cut their benchmark borrowing rate by half of a percentage point, bringing the key federal funds rate to a new target range of 4.75-5 percent. In the weeks leading up to the meeting, economists thought the Fed would stick with a more modest quarter-point hike, even as investors upped their bets on the bigger move, according to CME Group’s FedWatch tool.
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Recent interest rate trends
Every time the Federal Reserve adjusts interest rates, borrowing and savings rates move in lockstep. Compare Bankrate data to see how the latest Fed decision is impacting rates on key consumer products.
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Bankrate delivers the latest news to you.
Every financial decision you make is impacted by the Federal Reserve.
Rate cuts are coming. Just don’t call this a low-rate environment just yet.
Some high-profile economists have called the Fed’s half-point call “a mistake.”
Behind the slowing economy is a Fed determined to defeat red-hot inflation.
You might not feel better about inflation because prices are still up post-pandemic.
Prices rise and fall all the time in the U.S. economy. It’s not always inflation.
Economists see a slower job market in the year ahead but recession odds remain low.
Fed officials are trying to prevent an economic slowdown from getting worse.
Some high-profile economists have called the Fed’s half-point call “a mistake.”
Rate cuts are coming. Just don’t call this a low-rate environment just yet.
You might not feel better about inflation because prices are still up post-pandemic.
Economists see a slower job market in the year ahead but recession odds remain low.
Savings yields topping inflation could let you hold onto your purchasing power.
Fed officials are trying to prevent an economic slowdown from getting worse.
Tune in to Bankrate’s live coverage of the Fed’s first rate cut since 2020.
For savers, here’s what to consider when the Fed raises interest rates.
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