Federal interest rate cut unlikely to provide immediate relief to consumers

WFTS

WEST PALM BEACH, Fla. — The quarter percent rate cut announced by the Federal Reserve this week is unlikely to offer immediate relief to consumers, according to some experts.

"If you have a home equity line of credit, you didn't suddenly wake up to a quarter percent lower," Stephen Kates of Bankrate said. "The rates from the banks for borrowing and lending products go up in an elevator, and they come down on the stairs."

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Over time, the rate cuts will be favorable for things like auto loans and credit card rates, which are still running high.

"It's still important to know that even if we've gone down from 20 to 18 over the last two years, 18% is a punish