Will the Fed's recent interest rate cut affect daily life?

[Aliceouyang]

Some people think it will make loans cheaper (such as mortgages, car loans and credit cards), but others worry that this may mean a weak economy

Updates

10 mo

You explained it clearly! Do you think it is possible for the Fed to continue to cut interest rates next?

[WhiteSteve]

It’s being done in large part to help a weakening American economy. Job creation numbers are starting to drop of, there’s a lot of consumer uncertainty. Save your pennies and buckle up, this could be a bumpy couple of years. Any big purchases, make them soon.

[WhiteSteve]

Just scrolled by this in my opinions and noticed a typo🤦‍♂️😂

Drop off*

[dustybiker2]

Hey thanks for tagging your comment. Couldn't reply as blocked so never would have seen it.
It should be pinned to gags front page: "Read if republican"

[Aliceouyang]

So do you think this interest rate cut will hurt or benefit ordinary people?

[WhiteSteve]

@dustybiker2 I appreciate that! Sorry for the long read, haha

[WhiteSteve]

Well, Alice, it’s a mixed bag, like most things. It’s easier to borrow money, obviously. But it can also conversely drive up inflation, when people start spending more. Stuff real estate can become more expensive too, with the increased demand, and sometimes you can get a “housing bubble”, which inevitably pops later. If you have a savings account, you’ll accrue less growth in interest, so if you’re a retiree, for example, that wouldn’t benefit you, living off of savings.

The biggest thing is just that interest rates won’t just in and of itself solve or ruin anything, when just having tweaks made, and not some crazy change. The Fed, as long as Powell is there and not replaced by a loyalist, still has my trust as a good faith actor.

I wish I had a cleaner answer than that, but it’s complex, haha

[dustybiker2]

@WhiteSteve It's the real you. All good.

[DryGermanGuy]

Interest cuts are a boost to the economy, because loans become cheaper. But at this point in time, that rate cut is negligible.

[Nikki1989]

It is just a sign of how Trump is crippling the economy. It is so bad it will have effects all around the world.

[ilistengood]

I dont profess to be an expert but I dont think the head of the federal reserve was refusing to lower the interest rates just to piss off the king.

[seeyounexttuesday]

Eventually it will bring rates down. Rates will have to come down. Cars and houses are not selling.

[In_Trance]

Not really