The Federal Reserve on Wednesday cut its benchmark interest rate by 25 basis points in its first cut of the year, marking a move that could ease monthly payments on mortgages, credit cards and other loans.

The Fed’s benchmark rate helps set the prime rate, which banks use to determine how much to charge on many loans. That means Americans with credit card debt or adjustable-rate mortgages (ARMs) could experience some relief, while savers may feel the pinch as banks reduce interest payouts, according to Investopedia .

Credit Cards:

The 25-basis-point cut is expected to save credit card users $1.92 billion in interest over the next year, according to Wallethub .

The impact of a Fed rate cut on credit cards depends on the type of card you have. For fixed-rate cards, the interest

See Full Page