KEY TAKEAWAYS:

Fed cuts rates for first time since December

Benchmark rate lowered to 4.1% from 4.3%

Two more cuts projected before year’s end

Mortgage, credit card and savings impacts expected gradually

The Federal Reserve cut its benchmark interest rate Wednesday for the first time in nine months. Since the last cut, progress on inflation has slowed while the labor market has cooled. That means Americans are dealing with both high prices and a challenging job market.

The federal funds rate, set by the Federal Reserve, is the rate at which banks borrow and lend to one another. While the rates that consumers pay to borrow money aren’t directly linked to this rate, shifts in Fed policy affect what people pay for credit cards, auto loans , mortgages, and other financial product

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