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

10 simple points about what happens:

1. People and businesses can get loans at lower interest rates, which makes borrowing money easier.

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

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

4. Investors often buy more stocks when prices are low, which makes stock prices rise.

5. Interest on savings accounts typically falls, 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. Lower prices encourage economic growth by helping businesses and consumers spend more.

8. People can get cheaper home loans, which can lead to more home purchases.

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

10. Lowering interest rates can weaken the dollar, making U.S. goods cheaper for foreign buyers but making imports more expensive.

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