Federal rate cut: Will it lead to a better economy? Expert weighs in

ATLANTA - The Federal Reserve’s decision to trim interest rates by a quarter point this week will ripple through the economy in ways both helpful and painful, according to an Emory University finance professor.

Federal rate change explained

What they're saying:

Tucker Balk, who teaches finance at Emory’s Goizueta Business School, told FOX 5’s Tom Haynes that the most immediate effect will be a lower prime rate, which influences adjustable-rate mortgages and home equity lines of credit. "To the negative side, if you have a savings account, it’s likely that the interest rate on the savings account is gonna go down," Balk said. "But in general, lowering these interest rates is kind of like fuel for the economy."

The Federal Reserve faces a balancing act, Balk said, with its dual mandate