The Fed Finally Cut Rates. What Does That Mean?

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The Wall Street Journal

Daily News, Business News, News

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🗓️ 20 September 2024

⏱️ 21 minutes

🔗️ Recording | iTunes | RSS

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Summary

The Federal Reserve cut interest rates this week, after a two year battle with inflation. David Uberti explains how that will impact the economy and we hear from two couples about what they hope this means for their finances. Further Listening: - A Fed Insider on the Looming Rate Cut - What the Stock Market Panic Says About the Economy - Trump Allies Draft Plans to Rein in the Fed Further Reading: - Americans Are Desperate for Relief. The Rate Cut Is a Glimmer of Hope. - The Fed Aims to Repeat Greenspan’s 1990s Masterpiece - Fed Cuts Rates by Half Percentage Point Learn more about your ad choices. Visit megaphone.fm/adchoices

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0:00.0	This week the American economy hit a major turning point.
0:09.0	And all eyes were on Fed chair Jerome Powell today as he announced the first interest rate
0:15.2	cut in the US in four years.
0:17.7	The Fed opting to cut rates by a half a percentage point.
0:21.3	Millions of Americans now looking ahead to lower borrowing costs.
0:25.0	Central Bank also hinted at further reductions later this year.
0:28.0	The move will bring down the cost of borrowing, including on mortgages and credit cards in the U.S.
0:35.8	The Federal Reserve cut interest rates by half a percentage point.
0:39.8	Welcome news to a lot of people. People like Claire and Alessandro Segala.
0:46.0	As a personal level, I hope that that means that we will have more money for us
0:52.0	and that we can put it towards our future.
0:56.3	The Seagalas live in Seattle and recently they were in the market for a new home.
1:01.2	We wanted a town home with a garage. We definitely wanted three
1:06.1	bedrooms. We both work from home and we would like to have a family one day. We
1:11.5	wanted to be in a walkable location. We don't have a car, so we were,
1:16.4	location was probably most important to us.
1:19.3	Something just caught me there. You said you have no car but you wanted a garage.
1:24.0	Yes, yes. So we might get one in the future but we also wanted a garage for storage and that has been
1:30.8	awesome for us. In February, the Seagales found their dream town home, garage and all.
1:37.0	But there was a catch.
1:39.0	Their mortgage rate was really high, almost 7%.
1:42.0	They bought the house anyway, even though was really high, almost 7%.
	...

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