Column: Should the recent rate cut change your financial plan?

After months of speculation, the Federal Reserve finally lowered the federal funds rate, the benchmark rate that commercial banks charge when they lend each other funds to meet regulatory reserve requirements. A quarter-point rate cut may seem modest, but its impact can ripple through various aspects of your financial life. Here are a few things to think about:Mortgages and home equity loansA common misconception is that the federal funds rate has a direct cause-and-effect relationship with mortgage rates. So, the Fed’s quarter-point reduction doesn’t necessarily mean a quarter-point drop in mortgage rates. Credit cardsSome credit card rates are tied to the prime rate, which often moves in unison with the federal funds rate.