What does Federal Reserve rate cut mean for you? - FOX34 Lubbock

What does Federal Reserve rate cut mean for you?

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LUBBOCK -

The Federal Reserve's short-term rate slash is the biggest cut since the housing crisis.

Here is what it means for you. The APR on credit cards will drop an average of eight basis points. It'll be the same for auto loans. It jumps to a drop of 26 basis points on mortgages.

"Look at your portfolio, it's a good time to look at your 401(k) to make sure you're balanced," said financial analyst James Arnold of American Bank of Commerce. "And also look for opportunities to refinance your house, refinance your car. Rates are really low right now, it's a good time to do it."

Arnold warns, however, if supply chains from China stay disrupted for more than three or four months, the ripples may really hurt the national economy.

"Nothing's coming in from China right now. So over time, that will ripple into the economy. Whether it's housing...you know, most of our HVAC equipment comes from China. Most of our plumbing supplies come from China. So that'll disrupt the housing market. Then that ripples into parts of the economy."

Arnold said this dependence on China will really be tested next few months.

Coming back to home, he says the Lubbock economy is projected to stay resilient. Don't let the stock market scare you. It's emotional and will follow the fear.

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