Stretch Your Dollar: Where you’ll see relief after Fed cuts interest rates

NEW HAVEN, Conn. (WTNH) — For the first time in 16 years, the Federal Reserve slashed interest rates by half a percentage point and this means relief for millions of Americans.

The unusually large cut is the first decrease in four years.

“The US economy is in good shape. It’s growing at a solid pace. Inflation is coming down, the labor market is in a strong place. We want to keep it there,” Federal Reserve Chairman Jerome Powell said.

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The interest rate cuts is exactly what families in credit card debt needed to hear.

“(For) credit card holders a reduction in interest is really a breath of fresh air because I feel like we can never get ahead. I feel like this will make a bigger dent in getting back on track. Every little bit helps,” Karissa Warren said.

The cut paves the way for potential home buyers who say falling mortgage rates are a game changer, hoping to get more house for her money.

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“With mortgage rates going down I’m excited for an opportunity to maybe open some doors to some properties that I didn’t originally foresee as possible,” Warren said.

Experts said you can expect to see maybe a couple dollar less on your credit card, $10 or less on your car loan and $50 less on an average interest rate for a mortgage.

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