More Fed rate cuts are expected in the coming months.
FILE – A salesperson shows an unsold 2024 Cooper SE electric hardtop to a prospective buyer in the showroom of a Mini dealership Wednesday, May 1, 2024, in Highlands Ranch, Colo. NEW YORK — The Federal Reserve has cut its benchmark interest rate from its 23-year high, with consequences for debt, savings, auto loans, mortgages and other forms of borrowing by consumers and businesses.
“Act cautiously and responsibly,” Channel said, “and don’t make any rash decisions based on a single Fed meeting or economic report.”“As attractive as yields on savings instruments have recently been, it’s wise not to hold too much in cash because these are short-term instruments and their yields are ephemeral,” said Christine Benz, director of personal finance at Morningstar. “The really great yields that we’ve had recently may go lower.
That said, the Fed’s declining benchmark rate will eventually mean better rates for borrowers, many of whom are facing some of the highestin decades. The average interest rate is 23.18% for new offers and 21.51% for existing accounts, according to WalletHub’s August Credit Card Landscape Report. Loans for new vehicles right now are averaging 7.1%, with used vehicle loans at a much higher 11.3%, according to Edmunds.com.
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