Here at fox 4 we know you care about growth and money and what all that means for your family. Today the Federal Reserve cut interest rates for the third time this year leaving many to wonder what this means for the economy and your money
According to financial experts as the us economy continues to slow down due to ongoing trade disputes with China — the federal reserve cut interest rates Wednesday to a range between 1.5 % and one 1.75%
“ We took this step to help keep the U.S. economy strong in the face of global developments, and to provide some insurance against on going risks,” said, Federal Reserve Chair Jerome Powell.
However Adam Bruno a financial advisor with Evolution Retirement Services in Fort Myers says for the average person this means you'll be able to borrow money for a lot less.
“For example if they want a car interests rates that they pay for a car will be lower. home rates on interest rates, if they paid for home loans those will be lower as well,” said Bruno
But for those who are retired Bruno says you should really focus on this drop because interest rates could hurt more than it could help.
“Anything they have that has fixed rates of return those are going to go down because interest rates are going down, they’re not going to see the same benefit, and what’s going to end up hurting them is inflation, and the value of their money over time,”said Bruno
If you’re still in the workforce but are still feeling the effects from the 2008 recession Bruno says take advantage of this drop.
“So if you were on the fence before and you weren’t quite sure that you were going to be able to swing home ownership or that new car, you might want to go take a look and see what you’re numbers are now”, said Bruno
Bruno says these drops don't necessarily mean the economy is headed for the worst, if anything they are helping to balance it.
