The Brief

The Fed’s benchmark rate sets the tone for borrowing costs across the economy, from credit cards to small-business loans.

Mortgage rates move more with Treasury yields than Fed policy, so changes don’t always align.

Savers should expect yields on savings accounts and CDs to fall when rates come down.

LOS ANGELES - The Federal Reserve cut its benchmark interest rate by a quarter point Wednesday, marking its first reduction since December. The move lowers the central bank’s short-term rate to about 4.1%, down from 4.3%.

Fed officials said the decision reflects growing concern about the health of the job market. Hiring has slowed sharply in recent months and unemployment has ticked higher, shifting the Fed’s focus away from inflation, which remains slightly above its 2% targe

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