This week could see first rate cut in four years

The Federal Reserve is expected to lower interest rates for the first time in over four years after its two-day meeting concludes on Wednesday. However, the extent of the reduction is unknown.

Market analysts predict a half-point cut as inflation, at 2.53%, is closer to the Fed’s benchmark of 2%. Experts believe signs of a slowing labor market over the past few months also point to a rate reduction.

The Fed’s goal is to achieve a soft landing without triggering a recession and offer relief to people affected by the rate hikes, but some worry it may be too late, and the country could see a slowdown in economic growth.

But
Lowering interest rates will help businesses and households struggling with high mortgage rates and food prices. Experts say that though there won’t be an immediate impact, credit cards, car loans, and mortgages will see slight changes.

Economists and banks closely watch how much the Fed cuts rates and what they say about future rate changes.