What a Rate Cut Means for You

Traders work on the floor at the New York Stock Exchange as Federal Reserve Chairman Jerome Powell speaks after announcing a rate increase in New York on Nov. 2, 2022. Seth Wenig/AP Photo

For the first time in four years, the Federal Reserve is poised to announce today that it will cut interest rates.

In March 2022, the Fed took measures to slow inflation, but these resulted in higher interest rates, which took a toll on borrowers.