How Many Times Will the Fed Cut Interest Rates? Here's the Potential Answer.

Last week, the Federal Reserve's Federal Open Market Committee (FOMC) had its scheduled two-day September meeting where it discussed the state of the economy and decided whether to adjust the rate it charges banks for overnight lending.The FOMC slashed the federal funds rate (the overnight interest rate) by 50 basis points to 4.88% (the rate changes depending on circumstance but will hover between 4.75% and 5%), which was double the 25-basis-point adjustment it normally uses. The rate cut is likely to have ripple effects across the broader economy, increasing consumers' borrowing capacity, lowering their interest payments, and giving them more disposable income.That's great news for the broader economy and potentially great news for investors too.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool