Federal Reserve Cuts Interest Rates, Affects Consumers Jobs
Reading
The Federal Reserve has cut interest rates. This happened for the third time since September. The new rate is about 3.6 percent, the lowest in three years.
The rate affects how banks lend money to each other. The Fed wants to manage prices and help create jobs. It also changes the rates people pay for loans and credit cards.
Lower rates can help the economy grow faster. But inflation is still higher than the Fed wants it to be. The job market is not as strong as it was before, too.
Saving accounts will earn less money because of lower rates. Some banks have already lowered their rates. High-yield savings accounts are still better than normal accounts.
Mortgage rates for new houses may go down a little bit. This could help people buy houses and refinance loans. Credit card rates are still high, but could get a little lower.
Questions
What did the Federal Reserve do recently?
The Federal Reserve has cut interest rates.
How does the new interest rate affect loans?
It changes the rates people pay for loans and credit cards.
What happens to saving accounts with lower rates?
Saving accounts will earn less money because of lower rates.
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