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Periods of high interest rates can have a lagging effect on the economy, so it's possible we haven't seen all of the negative impacts of the Fed's rate-hiking cycle from 2022 and 2023 just yet.
The Fed lowered the federal funds rate — the interest rate banks charge each other for short-term loans — to a range of 4.25% to 4.5%, down from its previous target range of 4.5% to 4.75%.
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The Fed cut its federal funds rate — the interest rate banks charge each other for short-term loans — by 0.25 percentage points, lowered the rate to a range of 4.25% to 4.5%, down from its ...
This year's Fed rate reductions have marked a reversal after more than two years of high rates, which largely helped tame inflation but also made borrowing painfully expensive for American consumers.
Lower interest rates create a challenging situation if you count on your fixed-income investments to provide regular income. When rates drop, new bonds offer smaller interest payments than older ones.
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related to: have interest rates dropped yetHighest Satisfaction for Mortgage Origination, 2010-2017 - J.D. Power