The Fed cut rates by .5% and indicate plans to cut another 50 basis point before the end of the year. Mortgages rates are likely to fall, as will saving rates and consumers will pay a little less on credit card interests. For small businesses the effects of this rate cut will probably not result in a huge boost in consumer spending. With further cuts likely coming before the end of the year and more to come next year, things may start to move closer to normality.
Lower interest rates also mean small businesses are going to be able to afford to take out loans and expand their business. There could be an expansion in sectors like construction and manufacturing jobs as lower rates favors high growth in companies.
For now the economy is very volatile, and we will continue to monitor the ebb and flow of the latest economic moves and bring you up to date information.
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