How Will Lower Interest Rates Impact You?

As the Federal Reserve is expected to lower interest rates starting Sept. 18, many people are wondering how this move will affect them. Kurt Daum, senior portfolio manager at Victory Income Investors, shared his insights on the upcoming changes in a recent KSAT Q&A session.

Lower interest rates can have both positive and negative effects on individuals, depending on their financial situation. For borrowers, this could mean lower mortgage rates, reduced credit card interest payments, and cheaper loans for big purchases like cars or homes. On the other hand, savers may see lower returns on their savings accounts, CDs, and other investments tied to interest rates.

Daum emphasized the importance of diversifying your investments and staying informed about market trends to make the most of the changing interest rate environment. He also suggested consulting with a financial advisor to tailor your investment strategy according to your individual goals and risk tolerance.

While the full impact of the Federal Reserve’s decision remains to be seen, being proactive and staying informed can help you navigate the changes and make wise financial decisions in the coming months.