The Federal Reserve Board’s recent move to lower interest rates by a quarter-point doesn’t just influence Wall Street. It shapes the cost of daily living for wounded warriors and veterans.
“Mortgage payments, rent, groceries, auto loans, all of these are impacted,” said Wounded Warrior Project Director of Financial Readiness Julie Soares. “For veterans and wounded warriors recovering from injuries or adjusting to life after service, even small economic shifts can become major barriers or opportunities.”
The cut, announced Sept. 17, is the first of this year and set the central bank’s benchmark rate at 4 percent to 4.25 percent.
“For many of the warriors we serve, yes — lower interest rates have provided some much-needed financial relief,” said Soares. “Reduced borrowing costs can make it easier to afford essentials like housing, vehicles, or even managing existing credit card debt.”
According to WWP’s most recent Annual Warrior Survey, more than 92 percent of its warriors carry non-mortgage debt, and more than 60 percent owe over $20,000. The most common forms of debt are credit cards and auto loans, which are directly impacted by rate cuts.
Soares said many warriors who are not actively borrowing or those living on fixed incomes may not see the advantages of the recent rate reduction and may even experience lower returns on their savings.
“That’s why we view this moment, when there’s some degree of economic stability, as an opportunity to invest in preparedness,” she said.
Additionally, more than two-thirds of warriors reported struggling to make ends meet at some point in the last year, according to WWP’s most recent survey. Forty-four percent of the survey’s respondents said they have little to no confidence they could cover an unexpected $1,000 emergency.
Soares said through WWP’s financial education services, coaching, and budgeting resources, warriors can reassess their plans, reduce debt, and begin to build a financial safety net.
“The best time to prepare for a crisis is when you’re not in one, and we’re here to help them do that,” she said.
Financial stress is a daily reality for many warriors, Soares said.
“Whether it’s housing, medical costs, or the overall increase in living expenses, these pressures are deeply felt throughout our community,” she said. “But what also stands out is the remarkable resilience among our warriors. Despite the challenges, they continue to move forward with strength and resolve.”
WWP supports that resilience by providing tools to promote financial empowerment, including career and job placement services to increase income; financial literacy programs to help with informed decision-making, and benefits guidance to ensure warriors are accessing the full range of resources they’ve earned, Soares said.
“These aren’t just services, they’re critical steps toward long-term stability, dignity, and peace of mind,” she added.
Learn more about Wounded Warrior Project here.
Reach Julia LeDoux at Julia@connectingvets.com.