for most people the actions of the Federal Reserve seem to have no connection to their day to day life.
the prime lending rate is the interest rate that banks charge each other for short term loans.
many, many other rates that do affect your life are affected by the prime lending rate.
The interest rates on your savings accounts will drop.
The interest rates on mortgages will drop, perhaps convincing you to refinance.
The interest rates on car loans will drop
The interest rates on variable rate credit cards will drop.
In a nutshell, when the Federal Reserve drops the prime lending rate, they’re encouraging you to spend money.
now is a good time to start thinking about larger purchases that you may need to execute soon.
That doesn’t mean that you should go out and spend
clipped from: www.thesimpledollar.com