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What Lower Interest Rates Mean For The Economy : 1A The Federal Reserve has begun cutting interest rates after two years of rate hikes to the highest levels in decades.

It meets again this week to decide whether to cut them again, or keep them as is.

High interest rates made the cost of borrowing high, meaning that car loans, credit card debt, and mortgages cost exponentially more than before the pandemic.

We discuss how the Fed's decision to lower rates affects the economy.

Want to support 1A? Give to your local public radio station and subscribe to this podcast. Have questions? Connect with us. Listen to 1A sponsor-free by signing up for 1A+ at plus.npr.org/the1a.

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What Lower Interest Rates Mean For The Economy

What Lower Interest Rates Mean For The Economy

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The US Federal Reserve is seen in Washington, DC. MANDEL NGAN/AFP via Getty Images hide caption

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MANDEL NGAN/AFP via Getty Images

The US Federal Reserve is seen in Washington, DC.

MANDEL NGAN/AFP via Getty Images

The Federal Reserve has begun cutting interest rates after two years of rate hikes to the highest levels in decades.

It meets again this week to decide whether to cut them again, or keep them as is.

High interest rates made the cost of borrowing high, meaning that car loans, credit card debt, and mortgages cost exponentially more than before the pandemic.

How does the Fed's decisions to lower rates affect the economy? And how will the incoming Trump administration affect these rates going into 2025 and beyond?

Find more of our programs online. Listen to 1A sponsor-free by signing up for 1A+ at plus.npr.org/the1a.