1st Time Interest Rate Cut by Federal Reserve Since 2008 Recession

The Federal Reserve is making a cut to interest rates.

It’s the first rate cut since 2008, when the federal government slashed its rate to a record low, near zero, during the depths of the great recession.

Policymakers voted 8-2 in favor of a quarter-point cut in the federal funds rate Wednesday.

Interest rates affect the cost of borrowing for credit cards and mortgages.

That means the rate cut makes borrowing less costly for businesses and consumers, and in turn encourages more spending.

But financial experts warn some Americans could still suffer from the move. Namely anyone nearing retirement or are in retirement.

After the cut, interest rates are set to hover between 2 and 2.25%.