The Fed is set to cut rates for the first time in 4 years. What does that mean for your money?
CBS NewsOCT 16
Fed Cuts Interest Rates By Half a Point
Above: Fed Chair Jerome Powell on Sept. 18, 2024 announces an interest rate cut. Image credit: Anna Moneymaker/Staff/Getty Images News via Getty Images
The Spin
The Biden-Harris economy is well on its way to a full recovery. The Fed needed to normalize interest rates after their huge fall, and this rate cut will help the economy stick the landing and avoid a recession. This should sway more voters away from former Pres. Donald Trump to VP Kamala Harris.
Aside from the Fed breaking tradition by cutting rates so close to Election Day — possibly influencing the outcome of the election — this giant cut shows how poorly the Biden-Harris economy is doing. The economy needed this jolt just to show any sign of life, but it's not enough to help the average Americans.
Metaculus Prediction
There's a 55% chance that annual US core CPI inflation will be above 3% in December 2024, according to the Metaculus prediction community.
Go Deeper
© 2025 Improve the News Foundation. All rights reserved.Version 6.18.0
© 2025 Improve the News Foundation.
All rights reserved.
Version 6.18.0