(USAToday)
Borrowers have been taking it on the chin the past few years, with the Federal Reserve raising interest rates nine times since late 2015.
Now, the Fed is softening that blow.
The central bank on Wednesday reduced its benchmark federal funds rate by a quarter-percentage point. The possibility of three more decreases within the next 12 months would trim rates even more on credit cards, home equity lines, adjustable-rate mortgages and auto loans.
The goal of the cut – the first in more than a decade – is to make borrowing less costly for consumers and businesses, encouraging spending and bolstering the economy.
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