The Federal Reserve issued a quarter-point rate cut at its October meeting, the group announced Wednesday. This is the second time this year the Fed has cut rates, thanks in part to poor job growth. The latest jobs report showed only 22,000 jobs added in August – updated payroll data might be delayed during the government shutdown.
As you know, when the Fed cuts rates, it does make some things more affordable, such as borrowing costs on credit cards and home loans. On the other side of the coin, savers could take a hit, as APYs on savings accounts will dip slightly. That puts us in a place where the decisions you make now could have real impacts on your future yields.
