Fed rate cut expected to lower borrowing costs, raise inflation

The Federal Open Market Committee is expected to lower interest rates, potentially making borrowing cheaper. Analysts predict a quarter-point rate cut, bringing the federal funds rate to between 4% and 4.25%. This decision coincides with a significant drop in FICO credit scores, affecting loan costs for some consumers. Additionally, a rate cut could influence inflation and impact savings accounts, certificates of deposit, and retirement funds, with potential further cuts anticipated later in the year.