Hello from Sycamore,
The Federal Reserve Bank has lowered interest rates by .5% this week. What could this mean for me?
For those who are in the market for a big purchase (house/car) and considering borrowing money, this should help lower interest rates and in turn, make your monthly payments lower. Other interest rates that could decrease would be credit cards, adjustable-rate mortgages, and some private student loans. These interest rate reductions should help our economy grow.
In contrast, Money Market funds, Banks Savings accounts, and CD rates will go down. The yield on the primary money market we use will likely drop about .5% in the next few weeks.
The Federal Reserve Bank typically cuts interest rates when they believe they will see inflation continuing to subside. Yesterday we saw the stock market react to the rate decrease, and we wouldn’t be surprised if future interest rate reductions would continue to support higher share prices…which we all would welcome. History tells us that lower interest rates can lead to higher share prices.
On balance, we believe the interest rate reduction is a positive and we are pleased.
As always, do not hesitate to reach out to our offices at (765) 455-1554 to discuss this.
Thank you for your continued trust and support,
Sycamore Financial Group
***This article is distributed for general informational and educational purposes and is not intended to constitute legal, tax, accounting, or investment advice.***
