The Federal Reserve’s likely to lower interest rates again this week, but the cut may be so small that consumers may hardly feel it, analysts said.
When the Fed concludes its policy meeting on Thursday, most economists expect the Fed to trim its short-term benchmark fed funds rate by a quarter percentage point to between 4.50% to 4.75%. It would be the Fed’s second consecutive rate cut but smaller than its half-point cut in September that kicked off the rate-cutting cycle.
Consumers and businesses benefit from lower rates because they allow people to spend and invest at a lower cost, but analysts said until the Fed strings together a bunch of rate cuts, most will likely feel little relief.
“Consumers aren’t likely to feel much impact of this cut,” said Elizabeth Renter, senior economist at personal finance tool site NerdWallet. “It’s the cumulative journey downward that will slowly ease household financial pressures, particularly for those who carry debt.”
What can consumers expect this holiday if they buy on credit?
Still sky-high interest rates on credit cards and personal loans, said Matt Schulz, chief credit analyst at comparison site LendingTree.
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“That’s especially true with store credit cards,” he said. “Anyone applying for those types of cards should brace themselves for a possible APR of 30%, even if you have amazing credit.”
Regular credit card rates in November fell for a second consecutive…
