The Federal Reserve on Wednesday cutting interest rates for the first time in 2025.

 

"1In light of the shift in the balance of risks, today, the Federal Open Market Committee decided to lower our 2policy interest rate by a quarter percentage point."

 

The move comes as the Fed continues to 3assess the impact of President Donald Trump's tariffs on inflation, which has begun to 4tick up, and as the labor market shows multiple warning signs.

 

"We've seen 5hiring slow; teen 6unemployment is skyrocketing, Black unemployment 7skyrocketing. The Fed is concerned about the job, the job market, much more than they are concerned about the inflation side of their 8mandate."

 

And as credit scores fall at the fastest pace since the Great Recession, the national average FICO score dropped by two points this year, according to data released by the analytics company Tuesday — the most since 2009.

 

"Inflation is 9sticking around. Interest rates are still really high even with these cuts from the Fed, so it's just a really tough time for an awful lot of people."

 

Matt Schulz, chief consumer finance analyst for personal finance website LendingTree, says consumers can 10take their own steps to help reduce their 11debt burden rather than wait for the Fed.

 

"There are things that you can do with interest rates that will have a bigger impact than anything that the Fed will do."

 

Schulz says that includes 12shopping around for a mortgage or auto loan or making a balance transfer to a 0% interest credit card, or getting a 13debt consolidation loan to lower interest payments each month.