What the Fed’s interest rate cuts mean for your money

The Federal Reserve cut its key overnight lending rate again on Thursday, following on the heels of a half-point cut in mid-September.

The Federal Reserve cut its key overnight lending rate again on Thursday, following on the heels of a half-point cut in mid-September. Fed watchers also expect the central bank may cut the rate once more this year, by another quarter point, at its December meeting. If so, that would mean the fed funds rate, which directly or indirectly influences the rates on a host of consumer savings and lending products across the economy, would have dropped by a full percentage point by year-end. But that doesn’t mean as a result interest rates are now low — or will soon be low. “‘Falling interest rates’ are not the same as ‘low interest rates.’ Interest rates are high and will only decline to ‘not as high’ as … we move into 2025,” said Greg McBride, chief financial analyst at Bankrate. Here’s a breakdown of how far rates have fallen on your savings, loans and investments, and what experts see going forward. The rate environment is still not much friendlier for those carrying debt.