Interest rates are coming down….here’s exactly why.
Inflation, which means how much prices are going up, is slowing down in the U.S. This is good news because it means things like cars and plane tickets are getting cheaper.The government group in charge of interest rates, called the Federal Reserve, might lower these rates three times this year. This is surprising because…
Usually, they raise rates to stop inflation. Lowering rates can help the economy by making it cheaper to borrow money.
Regarding interest rates, there is speculation that the Federal Reserve might cut rates up to three times this year. This possibility surprised many, as it suggests a significant shift from the previous tightening cycle. Some economists believe this could be due to ongoing disinflation and a cooling economy, which might lead the Fed to ease monetary policy to support economic growth.
When the Federal Reserve cuts interest rates, it means banks can borrow money more cheaply. Because of this, banks can then offer loans to people at lower rates, including mortgages. So, if the Fed cuts rates three times, it makes it cheaper for people to borrow money to buy homes, which can help lower mortgage interest rates.
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