The Federal Reserve Board announces a much-anticipated decision on interest rates today. Many observers expect a cut, but what does this mean for the ordinary consumer?
The expected quarter-point rate cut won't do much at the consumer level right away, says UNO business professor Mark Rosa.
"The rates that they're cutting, it's called the discount rate at the Fed, or the Fed funds rate, within banks. So that doesn't impact the consumer immediately just in and of itself," said Rosa.
Rosa says the prime rate, if it is also cut, would then have some effects on the economy.
"The prime rate that banks will normally charge their corporate customers -- that might get cut a quarter of a percent. And then it's going to ripple through the rest of the financial pond," said Rosa.
Rosa says that will be felt in credit card rates, and among the eight percent or so of homeowners who have adjustable-rate mortgages. But if you're looking to refinance your fixed-rate home loan, you may not see cuts there until maybe early next year.