How soon will we notice changes and how do we make that move work for our money?
Wednesday's cut was the first in nine months and it was one-quarter point. Economists expect one or two more rate cuts before the end of the year, and a third in 2026.
RELATED: Fed cuts interest rates for 1st time in Trump's 2nd term
The common perception is that rate cuts have an overnight effect across the economy, but the real impact isn't that dramatic, and how soon your pocketbook will feel an impact from the rate cut depends on the type of loan or debt you're carrying.
"Somebody who might be carrying a balance on a credit card, you might start to see the rate change within one to two billing cycles," says Stephen Kates, a financial analyst at Bankrate.
Kates also tells Action News home equity lines of credit are variable, too, and likely to go down within a month or two.
But if you're a prospective home buyer or looking to refinance, be aware. Rates have already been on a downward trend and at this point, you have more of an impact on your rate than the Fed.
"Your credit score is going to be hugely impactful on what rate you actually get," says Kates.
Auto loans are generally fixed and won't change unless you refinance, but refinancing to a lower rate isn't necessarily going to make a big difference in your monthly payment and usually origination costs don't make refinancing worth it.
And while the rate cut is generally a positive move for borrowers, there is the other side of the coin for savers. Interest rates on savings accounts will go down.
Matt Colyar, an economist at Moody's Analytics says it's an important point but one that's often lost in discussion.
"One person's borrowing is somebody else's saving, and the yield for something like a money market mutual fund is going to go down and already has once the Federal Reserve's near-term plans became clear," he says.
But finance experts also say don't panic and don't make any major moves based on the Fed.
"Whether you're borrowing, whether you're saving, whether you are investing, your strategy should be the same. Have a long-term view of how you manage your finances and the best thing you can do is spend less than you make. Pay down high interest debt and invest in the future," says Kates.
We also asked Kates about CDs and bonds and he provided the information below.
CDs - "Existing certificates of deposit (CDs) will retain their fixed interest rates until maturity. Everyone who currently holds a CD will continue to receive the promised rate for the full term. However, when a CD matures, any reinvestment will depend on the prevailing interest rates and available CD offerings at that time."
"New CDs will reflect the changing rate environment shaped by the Federal Reserve's decision to lower the federal funds rate. While we can expect rates on savings products to trend downward, there may not be an immediate or uniform drop across all banks. Supply-and-demand dynamics and competition between institutions may keep some rates elevated for a time. Still, as the Fed continues to ease rates, new savings products will follow the broader downward trend."
Bonds - "Existing bonds retain their fixed interest rates until maturity. However, because bonds can often be sold on the secondary market, their market value is directly influenced by prevailing interest rates. When rates fall, the value of existing bonds typically rises. Investors who hold individual bonds to maturity will see no change in their expected returns. But those who sell before maturity may benefit from a premium on their bond's value."
"A bond's sensitivity to interest rate changes is tied to its duration-a measure of how long it takes to recover the bond's cost, based on the present value of its future coupon payments and face value. Bonds with longer durations are generally more sensitive to interest rate movements than those with shorter durations."
"New bonds will reflect the prevailing interest rates available at the time of purchase."