The Fed cut rates once again. Here's what it means for you.

"The call aligns with expectations: CME FedWatch projected a near-total chance of a reduction in the hours before the meeting. The Fed's economic projections released last month also penciled in two more normal-sized rate cuts for the year. Financial analysts told Business Insider that, after restrictive policy for much of the year, a pattern of interest rate cuts could start making it easier for Americans to finance homes, cars, and credit cards."

"Even with a sluggish labor market and inflation above Fed's 2% goal, Wednesday's rate cut could materially help borrowers. Thirty-year fixed mortgages, two-year auto loans, and credit card rates tend to move up and down alongside the federal funds rate, though this can change if there are major swings in inflation and investor behavior. And, while it takes time for Fed decisions to trickle down to Americans, consecutive rounds of cuts could make borrowing more affordable."

The Federal Open Market Committee implemented a quarter-point rate cut in October, marking the second reduction this year. Financial markets expected the move, with CME FedWatch showing near-certainty before the announcement. Economic projections foresee two additional similar cuts later this year. Analysts say a series of rate cuts could lower costs for mortgages, auto loans, and credit cards, making consumer borrowing more affordable over time. Lower rates could also reduce borrowing costs for businesses, encouraging investment and aiding a sluggish job market. Mortgage rates have already eased in anticipation of the cuts.

Read at Business Insider