Rate Cut

The Fed finally did the thing, and they went big.

On Wednesday, the Nation’s Banker announced its first interest rate cut in four years, slashing rates by a larger-than-normal half percentage point to ~4.9% (down from its two-decade high of ~5.3%). 

The cut indicates the Fed is turning the page on Uncle Sam’s soaring inflation era––the reason for rate hikes in 2022 and 2023––and is now more worried about keeping the job market strong and avoiding a recession; lower borrowing costs should spur spending and economic growth. Mortgage rates have been falling in anticipation of Wednesday’s cut, and credit card rates should soon follow.

The big cut spurred a stock market rally, sending the S&P 500 and Dow to record highs. Rates are expected to be trimmed by another half-point this year.

__

Verse to consider when you’re reevaluating your budget in light of interest rates going down…“Don’t neglect to do what is good and to share, for God is pleased with such sacrifices.”
Hebrews 13:16 (CSB) (read full passage)