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

10 simple points about what happened:

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

2. With cheaper loans, people can buy more houses or cars or start businesses, which helps boost spending.

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

4. Investors tend to buy more shares when prices are low, causing stock prices to rise.

5. Interest rates on savings accounts often fall, so people earn less money on their savings.

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

7. Lower prices boost economic growth by helping businesses and consumers spend more.

8. People can borrow more money to buy houses, leading to more house purchases.

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

10. Lowering interest rates could weaken the dollar, making US goods cheaper for foreign buyers but making imports more expensive.

In short, when the Fed lowers interest rates, it encourages borrowing and spending, which helps the economy grow, but can also reduce the return on savings and lead to higher inflation over time.