🔴 All eyes on 👈 What happens when the Fed cuts interest rates..

10 simple points about what is happening:

1. Individuals and businesses can get loans at lower interest rates, making it easier to borrow money.

2. With cheaper loans, people may buy more homes or cars or start businesses, boosting spending.

3. Companies borrow more to invest in new projects, which leads to business growth.

4. Investors often buy more stocks when prices are low, causing stock prices to rise.

5. Interest on savings accounts is usually low, so people earn less on their savings.

6. More spending and borrowing can lead to higher prices, which leads to higher inflation over time.

7. Low prices encourage economic growth by helping businesses and consumers spend more.

8. People can get cheaper home loans, which may lead to more homes being bought.

9. People and businesses with existing loans pay less interest, making debt easier to handle.

10. Lowering interest rates could weaken the dollar, making U.S. goods cheaper for foreign buyers but increasing the cost of imports.

In short, when the Fed lowers interest rates, it encourages borrowing and spending, helping the economy grow, but it can also lower returns on saving and lead to higher inflation over time.