Federal Reserve Gears Up for a Rate Cut—What This Means for Your Money

Bullish for stocks but bearish for bonds? Understanding what rate cuts would mean for your money.

Federal Reserve Chairman Jerome Powell’s speech is seen on a television screen as traders work on the New York Stock Exchange floor during morning trading on Aug. 25, 2023. Michael M. Santiago/Getty Images

For the first time in more than four years, the Federal Reserve is getting ready to cut interest rates, which could impact everything from U.S. stocks to bonds to savings accounts.

Speaking at the central bank’s annual Jackson Hole Economic Symposium on Aug. 23, Fed Chair Jerome Powell said at the conference of bankers, economists, and monetary policymakers that “the time has come for policy to adjust.”