Buffalo, N.Y. (WBEN) - Another interest rate cut of 0.25% is expected at the end of the Federal Reserve's two-day policy meeting this week.
The cut would push the overnight lending rate down to 3.75-4%, a range we have not seen since 2022.
What does it mean?
"If you are living large on interest from your high yield savings account, the amount is going to start to drop again," said Business Analyst Jill Schlesinger. "If you are paying a big balance on your credit card, that's going to be a little bit better. Borrowers are going to do a little bit better, and savers a little bit worse."
Now, attention will turn to whether the rate cuts will continue, as expected.
"If they don't have any more data that is federal government related, will they do this again?"
And if there is an end to the federal government shutdown that restarts publication of that data, could three months of employment data change their views?
The Fed's decision on rates will come on Wednesday.