Yesterday's news isn't the last we'll hear from the Fed regarding interest rates. Their two day regularly scheduled meeting is just next week, and another rate reduction may be announced by the time the meeting is adjourned. Rate cuts are being used to calm the markets and instill consumer confidence to keep us investing and spending. The three-quarter percentage cut yesterday and any future cuts could affect you in several ways. To see what they are please
Borrowing costs are lower for banks and so it's the Fed's hope they will pass these rates along to consumers and businesses.
Mortgage rates should be cheaper for those with good credit and money for a down payment.
If you're shopping for a car, you may be able to find a cheaper rate for a car loan.
If your credit card has a fixed rate nothing will change, but if your card has a variable rate you should see changes in about a month. Call your credit card company and ask them to lower your rate.
Interest on your savings accounts, money market accounts, and certificates of deposit will drop. But that doesn't mean you should give up on saving!