Key Takeaways

The Federal Reserve cut its key interest rate by a quarter point, now targeting 4% to 4.25%.

This rate cut aims to respond to a cooling job market and a slowing economy, although inflation remains high.

Borrowing costs may decrease for mortgages and loans, but savers might see lower interest rates on their accounts.

If the economy continues to weaken, the Fed may implement further cuts, which could benefit borrowers but harm savers.

Cheaper loans could help families manage costs, but inflation pressures on daily expenses may persist.

The Federal Reserve made its first rate cut of the year, lowering its key interest rate by a quarter of a percentage point. The new target range is now 4% to 4.25%. That move could touch nearly every part of your financial life, from credit

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