The recent cut in benchmark interest rates by the Federal Reserve could mean significant savings for loan borrowers. The interest rate was lowered by 0.25 percent on Wednesday.

Dr. Jason Imbrogno, an associate professor of economics at the University of North Alabama, explained that this reduction is beneficial for those with loans.

“Lower rates, certainly a good thing if you’re borrowing," Dr. Imbrogno said.

For instance, a mortgage payment could decrease by about $15 per month for every $100,000 borrowed according to the economist.

However, Imbrogno warned that while borrowers benefit, savers might earn less due to these lowered rates. The change, he noted, is not significant enough to alter financial behaviors drastically.

“When they lower rates, it’s intended to spur economic acti

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