What does it mean to me when the fed makes a rate cut?
Fed has money which it wants to give out to bankers so that they give it to the people of the country. The interest rate at which the Fed gives out the money to banks is being cut by the Fed in an attempt to circulate more money in the market. but this is not happening as most of the banks lost their trust on the people to whom they have bailed out money earlier and could not recouver, thus showing losses in their result books. To summarize, when Fed cuts rates, Retail loans, including housing, may become cheaper. This is a chain reaction where in the relief of rate cut is trickled down and every business dependent on loans will have a sigh of relief.
