🔴 Decision Day 👈 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, making it easier to borrow.

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

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

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

5. Interest on savings accounts often 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 help businesses and consumers spend more, which stimulates economic growth.

8. People can get cheaper mortgages, which leads 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 and more expensive to import.

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