Economists predict a modest cut of 0.25 percentage points, which would lower the federal funds rate from its current range of 4.75% to 5% down to 4.5% to 4.75%. This follows a larger rate reduction in September that caught many by surprise.<\/p>\n
As inflation continues to ease, the Fed appears to be gradually scaling back its previous measures aimed at containing record-high inflation that arose during the pandemic. Although the anticipated cut may offer some immediate relief, experts believe its impact will be limited at first, with more noticeable effects emerging if the Fed continues on this trajectory in the coming months.<\/p>\n
For those managing credit card debt, these incremental cuts could eventually translate to reduced interest costs, though the changes may be modest initially. Matt Schulz, chief credit analyst at LendingTree, suggests that, for now, consumers may see only small savings, with more significant effects likely to accumulate over time.<\/p>\n