New Mexico predicted to benefit if Fed lowers interest rate

The high cost of living might have a silver lining for New Mexicans if the Federal Reserve Bank lowers its interest rate next month.

In a speech last week, Fed chair Jerome Powell hinted that a reduction in the rate big banks will pay for overnight lending could be announced in September, and economists from the University of New Mexico and New Mexico State University said if that happens, it could be good news for this state and its residents.

The Federal Reserve interest rate is what banks are charged for overnight lending, but it also affects the cost of credit cards, mortgages, and federal, state, county and municipal government spending.

"It could potentially lead to a series of things that help reduce borrowing costs across the state," said Reilly White, UNM economist. "New Mexico