The Federal Reserve is finally lowering rates | Here's what consumers should know

The recent cut in the Federal Reserve's benchmark interest rate signals its confidence in easing borrowing costs and fostering economic stability. This marks the first rate cut in over four years, reflecting progress on inflation.

Fed Chair Jerome Powell emphasized that the central bank aims to stay proactive amid economic changes, asserting, "We know that it is time to recalibrate our (interest rate) policy to something that's more appropriate given the progress on inflation."

While capitalizing on lower interest rates might seem tempting, financial experts like Jacob Channel advise caution: "You shouldn't feel obligated to completely change up your financial strategy just because rates move lower."

The Fed's latest move is influenced by mixed labor market indicators, as stated, "Job gains have slowed, and the unemployment rate has moved up but remains low. Inflation has made further progress."

Read at ABC7 San Francisco