Fed Cuts Rates: What It Means for the Economy and You

The Federal Reserve lowered interest rates by 0.25%, marking its first cut since December 2024.

The decision comes amid signs of a weakening labor market and slowing economic growth, as policymakers aim to support jobs and encourage consumer and business spending.

Lower rates reduce borrowing costs for mortgages, loans, and credit, potentially stimulating investment and household consumption.

However, rate cuts also carry risks, including fueling inflation or asset bubbles if applied for too long.

Financial markets reacted quickly, with stocks and bonds adjusting to the Fed’s move, as investors weigh the delicate balance between sustaining economic growth and maintaining price stability.