Fed's Major Rate Cut Triggers Immediate and Future Economic Shifts

The Federal Reserve's unexpected half-point rate cut impacts mortgages, credit cards, and banks' profits, with further reductions anticipated.

The Federal Reserve cut its benchmark interest rate by 0.5 percentage points, lowering the target range to 4.75%-5%.
Mortgage rates dropped to their lowest level since February 2023, with predictions of further declines by year-end.
Credit card and auto loan rates are also expected to decrease, though savings for consumers will be modest.
Banks have profited significantly from high interest rates, earning $1.1 trillion in excess interest revenue.
The rate cut's impact on the upcoming presidential election is mixed, with potential benefits for both major candidates.