4 Money Moves to Take Advantage of the First Rate Cut of 2025

The Federal Reserve has lowered the for the first time this year, dropping the benchmark indicator 25 basis points to a range of 4.00% to 4.25%.
Following three reductions late in 2024, rates remained in the 4.25%–4.50% range throughout much of 2025.
The highly anticipated move comes after government reports showing both more modest inflation pressure and a weaker job market.
While the Fed doesn’t directly control interest rates, it does determine what banks can charge each other when borrowing or lending excess reserves overnight. That, in turn, influences interest rates on everything from car loans to credit cards.
The committee will meet again in October and December, and a majority of economists anticipate at least one more cut before the New Year, possibly more, according to a recent Bloomberg survey.
How to take advantage of the Fed rate cut
Lowering the fed fund rate impacts the cost of borrowing and manifests in interest rates on credit cards, auto loans, mortgages and more. It also influences the yields savers receive on CDs, high-yield savings accounts and money market accounts.