On Wednesday, the US Federal Reserve lowered its federal funds rate for the first time in 2025 by 25 basis points to 4% to 4.25%, citing economic indicators like a job growth slump and elevated inflation. The expects two more rate cuts this year.
The drop in rates is likely to bring some relief from some of the high borrowing costs that have impacted the masses over recent years. Columbia Business School's economics professor, Brett House, expects the rate-cut impact on household finances to be likely mixed.
