After more than a year of keeping the federal funds rate steady, the Fed on Wednesday made a much-anticipated cut of 50 basis points — or half a percentage point. The adjustment, announced by the Federal Open Market Committee (FOMC) at the end of its two-day meeting on Wednesday, lowers the target range to between 4.75% and 5.0%. The FOMC sets monetary policy by adjusting the federal funds rate, which influences the interest banks charge for credit cards, mortgages and other financial products, as well as annual percentage yields savers earn on deposit accounts. The rate reduction is more than the 25 base points some experts had predicted, and more are likely coming. Here are some financial moves to consider in the new economic landscape. Smart money moves to consider Mortgages
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Mortgages
If you bought a house in the past few years and are saddled with a high mortgage rate, this rate-cutting cycle could be the right time to refinance, according to Joe Bogardus, a financial services executive with Barnum Financial Group.
What the Fed Rate Cut Means for Mortgages, Loans and More
