Federal Reserve cuts interest rates for first time in more than a decade

The Federal Reserve on Wednesday lowered its benchmark interest rate for the first time since 2008 — a move that many had believed would signal the start of a new cycle of rate cuts to bolster the U.S. economy amid slowing global growth and stubbornly weak wage gains for many American workers. 

But in a press conference following the announcement of the cut -- a quarter of a percentage point to around 2.25% -- Fed Chairman Jay Powell suggested the central banks was not committed to continuing to lower interest rates: "We see this more of a mid-cycle adjustment than the start of a rate cutting cycle," he said.

What the Fed's quarter point cutmeans for borrowersis that those with credit cards tied to prime interest rates may see a small drop in their interest charges, as will borrowers with home equity lines of credit. Savers are unlikely to see a big drop in rates because savings accounts, particularly at the big banks, still pay rates that are much lower than what the Fed offers banks.

More at CBSNews.com.


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