Thread by @NPR

1/ The Fed has cut interest rates again, but what does that actually mean for consumers?

When rates were unusually low in the summer of 2016, that was good news for taxpayers and people eyeing big purchases — things like homes and cars.
npr.org/2019/09/18/761…

2/ Falling interest rates were bad for banks, people on fixed incomes (like retirees), and for companies set on expanding and expanding some more.
npr.org/sections/thetw…

3/ One consideration: The Fed's power over interest rates in general is very limited. The market ultimately determines real interest rates, not the Fed.

@planetmoney has more on that 👇
npr.org/sections/money…

4/ The ultimate goal is to find the “neutral rate,” a Goldilocks-ish sweet spot where money moves easily, consumer prices are stable and everyone who wants a job has one.
npr.org/sections/money…

5/5 Interest rates are historically low — and close to zero.

Former Treasury Secretary @LHSummers told @planetmoney that makes him worry about what we'll do when the next recession comes.

"We essentially won't have room to cut interest rates," he said.
npr.org/sections/money…