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BREAKING: Fed Cuts Rates by 0.25% – First Reduction Since 2020

The Federal Reserve lowered its benchmark rate to 5.00%-5.25% today, responding to cooling inflation (now at 2.9%). This ends the most aggressive hiking cycle since the 1980s. Mortgage rates are expected to dip below 6.5% within weeks, while credit card APRs should follow modestly.

Savings account yields will gradually decline, so lock in today’s 4.5%+ rates on long-term CDs. The S&P 500 jumped 1.2% on the news, particularly benefiting rate-sensitive sectors like tech and real estate. Powell signaled this might be the only cut in 2024 unless unemployment rises sharply.

What’s Next:
• Watch September’s CPI report (Aug 13)
• Banks likely to lower savings rates within 30 days
• Homebuyers should prepare for refinancing opportunities

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