3 things to do (and 3 things to avoid) before interest rates are cut

Inflation has been cooling and that’s a sign that the Federal Reserve could cut its federal funds rate soon. The Fed adjusts this benchmark rate in response to economic developments. And, many experts agree that a rate cut will happen at some point before the end of the year.

That’s important because changes to the federal funds rate are typically followed by changes to the interest rates financial institutions charge consumers for borrowing money and pay them for depositing it. If the Fed does cut its federal funds rate, you could earn less on deposits, but pay less on loans.

And, you should consider the prospect of a coming rate cut as you make financial decisions. We’ve outlined a few things you should do and a few you shouldn’t with a potential rate cut looming below.


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