The Fed Finally Cut Interest Rates. What Could It Mean for Your Finances?

This week, Craig Siminski, of CMS Retirement Income Planning, shares with us an article discussing the Fed’s first rate cut of one-half percentage point in four years, marking a critical juncture for the economy:

On September 18th, 2024, the Federal Reserve’s Federal Open Market Committee (FOMC) lowered the benchmark federal funds rate one-half percentage point to a range of 4.75% to 5.0%. It was the first rate cut since the Fed raised the funds rate aggressively from March 2022 to July 2023 to help control inflation.

The long-awaited policy shift suggests that a soft landing — the rare feat of bringing down inflation without causing a recession — is in sight. It also marks a critical juncture for the economy, with significant implications for consumers, businesses, and investors.

Why Now?

The Federal Reserve operates under a dual mandate to foster maximum employment and stable prices for the benefit of the American public. For a couple of years rising prices have been considered the more serious threat, but the inflation rate has moved much closer to the Fed’s 2.0% target.

Officials now see these two risks as “roughly in balance.” In his post-meeting press conference, Fed Chair Jerome Powell said, “The labor market has cooled from its formerly overheated state, inflation has eased substantially from…

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Craig Siminski is a CERTIFIED FINANCIAL PLANNER™ professional, with more than 25 years of experience. His goal is to provide families, business owners, and their employees with assistance in building their financial freedom.

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