In a dramatic pivot on 29 October 2025, the Federal Reserve, chaired by Jerome Powell, delivered its second interest rate cut of the year, slashing the federal funds rate by 25 basis points to 3.75-4 per cent amid waning inflation and a faltering job market. This Fed rate cut injects vital liquidity into an economy strained by high borrowing costs, promising incremental relief for households burdened by credit card debt and elevated mortgage rates.
As markets buzz with prospects of a December rate cut, savers confront eroding high-yield savings returns, while auto loans linger in affordability limbo, reshaping personal finance landscapes overnight.
