The Fed is set to cut rates for the first time in 4 years. What does that mean for your money?
CBSN
It's been a long and bumpy road to the Federal Reserve's first interest rate cut in more than four years — a moment that could prove decisive to the finances of millions of Americans. How much can you earn with a long-term CD this fall?
On Wednesday, the Fed is expected to reduce its benchmark rate, which currently stands at its highest point in 23 years, after the central bank introduced a flurry of rate hikes to tame the pandemic's high inflation. While economists are unanimous in expecting a rate cut on September 18, they're split between predicting a 0.25 percentage point cut versus a 0.5 percentage point reduction, according to financial data firm FactSet.
Whatever the size of the cut, the Fed's first rate reduction since March 2020 will provide some welcome relief for consumers who are in the market for a home or auto purchase, as well as for those carrying pricey credit card debt. The decision is also expected to kick off a series of rate reductions later this year and into 2025, which could have lasting implications on mortgage and auto loan rates, but could also have a downside of shaving the relatively high returns recently enjoyed by savers.
Democratic Gov. Andy Beshear banned the use of "conversion therapy" on minors in Kentucky on Wednesday, calling his executive order an overdue step to protect children from a widely discredited practice that tries to change a person's sexual orientation or gender identity through counseling. Over 20 other states that have passed laws prohibiting the controversial treatment.
As the number of electric vehicles on U.S. roads continues to rise, concern has emerged about the ability of existing safety infrastructure to handle their increased weight. Guardrails and other roadside safety barriers, typically tested against vehicles weighing around 5,000 pounds, are now being challenged by EVs that often exceed that weight.
Washington — The House is set to vote Wednesday on a measure to keep the government funded with less than two weeks before a possible government shutdown. But the measure, paired with what Democrats see as a poison pill on noncitizen voting, faces headwinds in the lower chamber. And even among Republicans, support may fall short.