The Federal Reserve's interest rate cut will have a gradual impact on mortgages and credit card relief could be slow.

Before Wednesday, economists and markets were betting on a December rate cut. After Fed Chair Jerome Powell’s comments, they aren’t so sure.

When the Fed stops buying or begins selling bonds, private investors must step in, often demanding higher yields to compensate for risk. That pushes mortgage rates higher, even if the Fed is cutting short-term interest rates at the same time.

Fast forward to September 2025, when the Fed cut rates again, this time by 25 basis points, lowering its benchmark range to 4.00% to 4.25%. Mortgage rates responded positively, with the average 30-year fixed dipping to a three-year low of about 6.13%, down from the mid-6.4% range earlier that month.

Interest rates should continue their downward journey, as forecasters expect another rate cut from the Fed on Oct. 29. Are more cuts coming?

Last month, the Federal Open Market Committee (FOMC), a policymaking body at the Fed, projected two additional quarter-point rate cuts over the remainder of the year. By contrast, Trump has called for rate cuts totaling as much as 3 percentage points. Trump has carried out a pressure campaign at the Fed with little precedent.

The FOMC cut its benchmark rate after a two-day meeting, briefly halting market momentum as Powell struck a hawkish tone. Learn why this matters for investors.

The Federal Reserve cut its benchmark interest rate for the second time this year despite elevated inflation amid concerns about weakness in the labor market.

Jeremy Siegel, professor emeritus of finance at University of Pennsylvania’s Wharton School of Business and WisdomTree chief economist, joins 'Squawk Box' to discuss the Fed's interest rate decision,

The Fed Reserve cut its key interest rate this week as it continues driving in the dark amid the ongoing shutdown.

Even though inflation is currently running 3% annually, well above the Fed’s 2% goal, there have been signs that some of the driving factors behind recent price increases are moderating. The Fed rate cut will likely lead to modestly lower borrowing costs for consumers, as rates on auto loans, credit cards and mortgages dip.

U.S. Treasury Secretary Scott Bessent on Thursday applauded the Federal Reserve's decision to cut interest rates by a quarter percentage point, but said comments casting doubt on another rate cut this year showed the institution needed a major revamp.