What the Federal Reserve's interest rate cut means for consumers

On Wednesday, the Federal Reserve cut interest rates for the first time in nine months. The quarter percentage point cut aims to keep inflation in check and combat a challenging job market. As consumers look for relief from high interest rates, business owner Shimika Haynes said every little bit helps. “A cut is a cut,” she said. It helps me and take funds to put somewhere where I can save enough to open another business.” Stephen Kates, a financial analyst with Bankrate, said the impacts may vary. He said savers may be feeling the pinch as they earn less on their money in investment accounts,”Savings accounts, CDs (certificate of deposit), you’re going to see those come down first. So that might negatively impact savers,” Kates said. “On the borrowing side, this is good for consumers.” Cuts from the Federal Reserve are already priced into mortgage rates, meaning little to no impact, according to financial experts. Christian Covert, a realtor with Comey and Shepherd Realtors, said he’s still seeing optimism from prospective homebuyers on the market. “As far as new applications go, they’re seeing an all-time high as far as the past three months go,” Covert said. “So the buyers market is alive and well and still as competitive as it ever was.” The Fed is expected to cut rates at least two more times before the end of the year.