End of July the Federal Reserve cut interest rates, for the first time since 2008!!!

Yet, this is the first time that they are cutting interest rates in over a decade, the interest rate was not stagnant. Over the past years, the interest rate was increased, in response to the growing US economy. However, now there are scares of a slowing US economy due to many factors such as the Trade War with China.

This rate cut leaves the current borrowing rate at between 2% and 2.25%

Why did the Fed cut interest rates?

For the past 5 years, everyone has been talking about a recession hitting the United States. A recession is a temporary period when the economy slows down, and trade reduces. The GDP (Gross Domestic Product) of a county falls, which means that a country is usually producing less, and exporting less than what it is importing.

For the United States, one of their major importers in China.

What does this mean for you:

• Saving account rates may fall
• Borrowing costs may fall
• Student loan tab may be adjusted (becoming lower)
• Credit card charge may change (becoming lower)

 The question on everyone's mind is if another cut will come this September