BECKLEY, WV (WVNS) — The Federal Reserve cut interest rates by 50 basis points on Wednesday, September 18, 2024, the central bank’s first rate reduction in 2-and-half years.

The step could lead to lower borrowing costs for both consumers and businesses.

The new federal funds rate is 4.75% to 5%, a signal that the war against inflation is coming to an end.

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Prices rose 2.5% in August compared to a year earlier.

That was the smallest increase in three years, just slightly above the target level.

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Financial experts said the slashed interest rates is a way of maintaining the good economy in the U.S.

Beckley mortgage lender Jackie Mantz said on Wednesday that homebuyers could see reduced monthly mortgage payments, thanks to the new rate, as early as the spring. While those buying vehicles will likely see lower payments much earlier.

“Initially, it will just impact the short-term rate. So you will see it for businesses,” Mantz said. “It will drop for businesses. It will drop for prime rate. You’ll start to see your credit card rates come down, which those are still very, very high but you’ll see those come down.”

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