Understanding the Fed's rate decisions: Do we want high or low interest rates​?

After holding the federal funds rate steady throughout 2025, the Federal Reserve decided to cut its benchmark rate by 25 basis points in September, bringing the target range to 4%-4.25%. As a result, interest rates on credit cards, loans, and deposit products will fall — good news for borrowers, but not so great for savers. That’s a stark contrast to last year, when it was more expensive to borrow money, but you could also earn above 5% on your savings. Understanding the pros and cons of high versus low ...