The Federal Reserve cut its benchmark lending rate again today, this time by a quarter point.

The economy, and particularly the high cost of living, including high housing prices, which are directly affected by these rates,

is a big reason why Donald Trump won this week.

Today, Federal Reserve Chair Jerome Powell was asked about a disconnect between how people feel financially

and other data suggesting the economy is doing well.

We say the economy is performing well, and it is, but we also know that people are still

feeling the effects of high prices, for example.

And we went through the world, went through a global inflation shock. And inflation went up everywhere.

And, you know, it stays with you because the price level doesn't come back down.

So what that takes is it takes some years of real wage gains for people to feel better.

And that's what we're, that's what we're trying to create.

And I think we're well on the road to creating that.

At the same time, Powell and the Fed could be facing a tougher road to come with possible changes and pressure from President-elect Trump.

He's often been critical of Powell, whom he first nominated as chair.

Gina Smilik is covering it all for the New York Times and joins us now. Thanks for being with us.

Thanks for having me. So what do you make of today's announcement? What does it say about the strength of the U.S. economy?

I think today's announcement really says that inflation is coming under control, which has sort of been the missing element of this economy for years now.

And that is allowing the Fed to bring down interest rates, which makes, obviously,

for the typical consumer, makes it a little bit cheaper to buy things on borrowed money. So I think

all in all, this is a sign that things are good and things are, in fact, getting better. So I think

overall, very optimistic message. And what might it mean for people's finances and their borrowing?

How will this series of cuts help on that front?

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