When the Federal Reserve reduced its benchmark short-term interest rate by half a percentage point in September and then by another quarter percentage point in early November, it signaled that it’s shifting into a rate-cutting mode after a series of hikes that started in March 2022 to combat inflation.
That’s reason to celebrate if you have high-interest debt or expect to buy a home or car in the near future. But if you’re a risk-averse investor who has enjoyed earning 5% or more on your savings accounts, you probably aren’t joining in the festivities.
