2 ways rate cuts will impact your finances

The Federal Reserve's recent 50 basis point rate cut in September has investors speculating about the central bank's future rate-cutting path as the November meeting approaches. With rates trending downward, Claris Financial Advisors Founder Lee Baker joins Wealth! to discuss the impact of lower rates on personal finances. Baker explains that rate cuts have a dual effect on individual finances. First, they lead to lower returns on savings accounts, including high-yield options. Second, they result in reduced interest rates on debt, potentially allowing individuals to save more on their borrowings. For those with high-yield savings accounts, Baker advises careful consideration of financial needs before making any changes to investment strategies. He emphasizes the continued value of these accounts, stating, "Even though the 5% high-yield savings accounts are going away, 4.5% is still pretty doggone good. So if you haven't had the opportunity yet... now is still a fantastic time to get some money out of just your bank account [and] put it in a high-yield savings account."
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