How a Fed rate cut affects your bank accounts, loans, credit cards, and investments

The Federal Reserve is expected to announce its second rate cut of the year on Wednesday. If Wall Street's prediction of three rate cuts before the end of the year holds true, that will be two down, one to go. Here's how the new, lower-rate cycle will impact deposits, credit, and debt. How rate cuts affect checking and savings accounts 2025 has been a year of modest earnings on deposit accounts. Another rate cut won't help. Checking accounts Your checking account earns only a fraction more than mon ...