The Federal Reserve will almost certainly cut interest rates by a quarter point on Wednesday, but most Americans feel indifferent or upset about it.
What It Means For You: You’ll save money on credit cards and loans, but many people say the cut won’t make a real difference in their daily lives.
What’s Happening: A new WalletHub survey shows 65% of Americans feel indifferent or upset about Fed rate cuts. Nearly 4 in 5 people think now is not a good time to borrow money.
• 59% say a quarter-point rate cut won’t change their life
• 3 in 5 people think the economy is getting worse
The Money Impact: Credit card users will save about $1.92 billion in interest over the next year. Mortgage rates have already dropped 11 basis points, saving homeowners $9,720 over a 30-year loan. Car loan rates are expected to fall by 12 basis points.
Between the Lines: Americans care more about rising prices than job losses. More than 2 in 3 people say inflation is a bigger problem than unemployment right now.
• 78% worry more about inflation stealing their money than AI stealing their jobs
• Nearly 3 in 5 people don’t trust government economic data
The Big Picture: Even with rate cuts saving consumers billions, many lenders are getting pickier about who gets loans. This explains why most people don’t think lower rates will help them personally.
The Sources: WalletHub Fed Rate Survey.