On Wednesday, the Federal Open Market Committee (FOMC) cut the federal funds rate by 25 basis points, as expected, bringing the federal funds rate range to 4.00%-4.25%. The Fed last cut rates at its December 2024 meeting, following cuts at its two previous meetings. There are a few crucial elements that led to the rate cut, namely a steadily weakening labor market. A federal rate cut doesn’t automatically or immediately mean lower interest rates on financial products. The article Fed Rate Trimmed: What Does It Mean For You?