Well, it’s almost there.
Though that’s slightly higher than what markets expected, it still marks the lowest pace since early 2021.
But market watchers aren’t expecting another jumbo interest rate cut next month.
Some even say the Fedwon’t cut rates at all.
The Fed’s two main goals are to maintain maximum employment and contain inflation.
The most recentemployment reportfrom the Bureau of Labor Statistics showed US hiring exploding past expectations in September.
Instead of greater jobless numbers, the unemployment rate ticked down slightly.
“Although the Fed remains vigilant on inflation, the labor market has risen to the fore.
Experts agree that the Fed can and should continue lowering interest rates.
In other words, there’s no longer an urgency for an aggressive cut.
Interest rate cuts affect the cost of borrowing money, whether with aloanorcredit card.
They also determine how much you earn on the money you deposit in ahigh-yield savings accountorcertificate of deposit.
As theFed eases interest rates, you’ll be charged less to borrow money.
You’ll also see smaller returns on your savings.
However, the Fed isn’t slashing interest rates all at once.
And it will take time for those policy changes to trickle through the economy.
Financial institutions are often quick to raise the cost of borrowing but slow to lower it to maximize profits.
The Feddoesn’t directly set mortgage rates, but its policy adjustments and economic outlook influence rate movement.
Smaller interest rate cuts meanmortgagerates may not see significant declines in the near term.
For savers, many banks have already lowered their annual percentage yield onsavingsandCDs.
Overall, cooler inflation and interest rate cuts create a bit more breathing room in household budgets.
