There they go again. For the third time in about three months, the Federal Reserve has cut interest rates — a move that's likely to have an impact on the credit cards in your wallet and maybe your monthly house payment, to name a couple of examples.
The hat trick of three straight rate cuts is the first in more than 20 years. With its latest move, America's central bank has lowered its benchmark interest rate ("the federal funds rate") by another quarter of one percentage point — to a range of just 1.50% to 1.75%.
Policymakers raised rates throughout 2018, and some experts have wondered why the Fed is cutting rates now. But many others have said the trade fight and slowing economies around the world mean the U.S. economy needs lower rates as a sort of insurance policy.
The central bank itself has cited "uncertainties."
Plus, President Donald Trump has been leaning on the Fed to push rates down.
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Courtesy of moneywise.com
Written by Sarah Cunnan