10/01/2025
The Federal Reserve cut rates in September – Fed Chairman Powell announced that the Fed had reduced its key interest rate by 0.25%, the first rate cut of the year. The Fed rate is the overnight rate that banks pay to borrow from the Fed, the shortest of short-term rates. When the Fed lowers its rate, banks typically follow with an equal reduction in their prime rate. That affects business lines of credit, home equity lines of credit, and other short-term loans. However, it does not necessarily bring down mortgage rates or long-term bond yields. In fact, both rose slightly after the rate cut, though they remain near their lowest levels of 2025.
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The Federal Reserve cut rates in September – Fed Chairman Powell announced that the Fed had reduced its key interest rate by 0.25%, the first rate cut of the year. The Fed rate is the overnight rate that banks pay to borrow from the Fed, the shortest of short-term rates. When the Fed lowers its .....