Federal Reserve Cuts Interest Rates for the First Time Since December

The Federal Reserve has lowered interest rates by a quarter of a percentage point, marking the first cut since December. The new federal funds rate range stands at 4% to 4.25%. While median projections suggest two additional cuts this year, Chair Jerome Powell emphasized that further reductions are not guaranteed.

Borrowing costs are expected to soften, benefiting credit cards, auto loans, and other forms of debt. Refinancing opportunities may improve as a result. Meanwhile, banks and credit unions are likely to trim yields on savings accounts, money market accounts, and certificates of deposit. Savers can still secure historically high rates on CDs and high-yield savings accounts for now.

In education finance, the updated FAFSA for the 2026-27 academic year opens October 1. Congressional changes under the "One Big, Beautiful Bill" will alter eligibility and calculation guidelines for federal student aid.