Powell acknowledged consumers face “really high” costs and said the Fed is “working hard” to make their lives more affordable. Will rate cuts help?

Many types of consumer loans are impacted when the Fed lowers its overnight lending rate, but it also depends on the product and duration.

A cut is something of an “insurance policy against a shattering of the U.S. labor market,” UBS chief economist Paul Donovan noted this morning.

The central bank is widely expected to announce a quarter percentage point, or 25 basis point, cut to its overnight lending rate at Wednesday's meeting.

The FOMC elects to cut interest rates in December to 3.5% -3.75%, but Powell siignals that policy may now by neutral, making a January cut less probable.

Powell acknowledged consumers face “really high” costs and said the Fed is “working hard” to make their lives more affordable. Will rate cuts help?