How to make the Fed rate cut work for you
CNN
High interest rates have begun their initial descent.
High interest rates have begun their initial descent. The Federal Reserve on Wednesday announced it would cut its key overnight lending rate by half a percentage point — aka 50 basis points — marking the first time the US central bank has lowered rates since March 2020. It is expected to continue cutting rates over the next year or two. But Federal Reserve Chairman Jerome Powell said Wednesday the board will “make decisions meeting by meeting based on incoming economic data.” Barring a big economic slowdown, however, further cuts may be smaller (e.g.., a quarter point). Of today’s cut, Powell said, “We made a good strong start — a sign of our confidence that inflation is coming down … on a sustainable basis. I think we’ll go carefully meeting by meeting.” The Fed’s moves will result in lower interest rates on various consumer financial products and interest-bearing accounts. But don’t expect Wednesday’s single cut — or even another moderate cut or two this year — to necessarily drastically alter your financial life in every way. For borrowers, “rates are not going to fall fast enough to bail you out of a bad situation,” said Greg McBride, chief financial analyst at Bankrate.com. “And for savers, these rate cuts won’t erase the benefit you got from rising rates in 2022 and 2023. Savers with competitive high-yielding accounts will still be way ahead of the game.” Here’s a more specific look at how the Fed’s rate cutting will affect your credit cards, car loans, home loans, high-yield savings accounts, certificates of deposits and other financial accounts.
Nippon Steel is expected to re-file its application for a national security review by American regulators of its $15 billion takeover bid of US Steel, sources familiar with the matter told CNN on Tuesday, buying Japan’s largest steelmaker an additional 90 days to close its acquisition of an American rival after political opposition emerged in an election year.
So far, the attacks that targeted Iran-backed Lebanese militant group Hezbollah members through their pagers have had devastating consequences. At least nine people, including an eight-year-old girl, were killed, and at least 2,800 were wounded. Over 150 of those injured are in critical condition, according to the Lebanese health minister.