luckyroyal What the Fed Rate Cut Will Mean for Five Areas of Your Financial Life

The moment consumers have been waiting for is finally here: The Federal Reserve cut its key interest rate by half a percentage point Wednesday.

The rate now stands at about 4.9 percent, and some economists think it could fall another half a percentage point before the end of the year. This number doesn’t translate directly into what you’ll pay if you’re a borrower. If only credit card companies charged so little.

Still, this move should eventually bring interest rates down for many borrowers, even as it is likely to lower the rates that financial institutions pay out to savers.

Here’s what to watch for in five key areas of your financial life, as rates fall now — and hopefully (for borrowers at least) even more in the coming months.

ImageOnce you establish your budget for a car, get preapproved for an auto loan through a credit union or bank. Credit...Scott Olson/Getty ImagesAuto Rates

What’s happening now: Auto rates and car prices have been trending lower but they still remain elevated, making affordability a challenge. But dealerships are offering more incentives and discounts to attract buyers, and that’s expected to continue.

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