SALT LAKE CITY (KUTV) — Economists are expecting an announcement from the Federal Reserve as it lowers interest rates by a quarter of a point.
Bankrate financial analyst Stephen Kates said the Federal Reserve has been focusing on easing inflation with past cuts, and now looks toward implications in the labor market.
“The labor market has been weakening. They’ve made it clear that while it might take a little focus off of fighting inflation, it is important,” Kates said. “Seeing the unemployment rise too quickly, seeing companies seem to freeze up in terms of the hiring that they are doing, that’s problematic for the economy.”
According to Kates, the Federal Reserve hopes to promote morning hiring and movement in the labor market.
“The Federal Reserve is trying to boost the economy a little bit with some of these rate cuts,” Kates said. “Make borrowing easier, make investments for businesses easier through this, and hopefully spur some hiring.”
More rate cuts are expected in December at another meeting before the end of the year. Looking ahead, this could mean lower interest rates for auto loans and mortgages as the Federal Reserve attempts to slowly bring down rates.
The results of this won’t be felt instantly.
Kates said this news allows people to strategize their finances and plan their spending better.
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