As expected, the Federal Reserve made the move to cut interest rates yesterday.
The cut of a quarter point won't have much of an impact on you. While it does help anyone that has credit card debt, mortgage rates were already low. Interest rates on car loans are low, too. Economist Ray Perryman tells KTRH the cut was exactly what the Fed had signaled.
"It's what they signaled. With where we are in terms of growth and where the Fed is in its balance sheet, we don't really need a rate cut right now," Perryman stated.
The President wanted to see big cuts, maybe bigger than the Fed wound up doing. Perryman thinks that is about the 2020 election.
"The folks who are in power and want to stay in power always want low interest rates. The folks on Wall Street always want low interest rates. There's always a constituency for low interest rates," Perryman explained.
This was the first time the Fed cut interest rates since the financial crisis in 2008.