Federal Reserve Chairman Jerome Powell hinted last week that interest rates may be cut when the Fed meets next month. On this week’s Money Monday , financial expert Paul Hood explained what that could mean for consumers and how to prepare.

What does a possible rate cut mean for the average consumer?

“What you have to remember is, what is interest? . It’s the time value of money,” Hood said. “So what really matters is which side of that equation are you on. Are you receiving interest? Are you paying interest?”

Should people hold off on big purchases?

“If you’re paying interest, then maybe, you know, you should delay buying a car if interest rates are gonna fall,” Hood said. “You should consider when they do fall, maybe refinancing your home because you can save substantial money—espec

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