Federal Reserve cuts key interest rate by a quarter-point

The video discusses the Federal Reserve's decision to cut interest rates before President-elect Trump takes office. This move aims to support the economy and employment. The rate cut benefits those with credit card balances but may reduce savings interest and potentially increase inflation. Jerome Powell highlights economic progress and the Fed's commitment to maximum employment and controlling inflation. The video also notes this is the third rate cut since September, aiming to prevent a recession.

What is the primary reason for the Federal Reserve's recent interest rate cut?

• To support the economy and employment

• To raise interest rates on savings accounts

• To increase inflation

• To decrease the value of the dollar

According to Jerome Powell, what progress has the economy made?

• The economy has stagnated

• The labor market is overheated

• Inflation is closer to the 2% goal

• Unemployment rates have increased

How might the interest rate cut affect credit card holders?

• It will increase their interest rates

• It will double their interest rates

• It will have no effect

• It could lead to noticeable savings

What is a potential downside of the interest rate cut?

• Increased inflation risk

• Stronger dollar value

• Higher interest on savings accounts

• Decreased employment opportunities

How many rate cuts have occurred since September?

• One

• Two

• Three

• Four