What the Fed rate cut will mean for your finances

NEW YORK (AP) -- The Federal Reserve has cut its benchmark interest rate for the first time in nine months. Since the last cut, progress on inflation has slowed while the labor market has cooled and Wall Street has rallied. That means Americans are dealing with both high prices and a challenging job market. The federal funds rate, set by the Federal Reserve, is the rate at which banks borrow and lend to one another. The rates that consumers pay to borrow money aren't directly linked to this rate. But shifts in Fed policy affect what people pay for credit cards, auto loans, mortgages, and other financial products.