OHIO — After months of back and forth on whether to cut interest rates, the Federal Reserve finally made its first cut. 

What You Need To Know

  • Analysts say the half percent cut doesn’t look like it will have a great impact at this point 
  • Experts note that the rate cut is good news for investors and possibly for the market, but consumers will still feel the impact of high inflation 
  • Experts say, with the cuts, there is still a focus on the labor market as that produces additional concerns about economic growth

Brandon Zureick, managing director and portfolio manager for Johnson Investment Counsel said while he believes the half percent cut on interest rates didn’t move the needle much, it does send a signal.

“I think the more powerful thing is the signal the Fed is sending, making the decision to start off with a half a percent, versus something a little more incremental, like a quarter percent… sends businesses and consumers the signal that they're serious about bringing interest rates down, and that concerns about inflation are fading, but concerns about economic growth are starting to pick up," he said.

As for how big of a deal this cut is, Zureick said it's good news for some.

“No doubt it's good news for investors and maybe good news for the market, but everyday consumers are still feeling the effect of high prices," he said.

That’s because of inflation. With an expectation of inflation cooling off over the next several months, Zureick said it’s possible that it will be at the expense of the economy continuing to weaken. In the meantime, the belief is that investors should be asking why they need to start cutting interest rates.

“The unemployment rate is up about a percent from its lows, and so, you know, many eyes remain pretty squarely focused on the labor market for signs that we can continue to soften there,” Zureick said.