Crappy Headline

I got the following email (headline) from CNN.

The Fed cuts by one-half percent the federal funds rate, a rate that heavily impacts how much interest consumers pay on debts. CNN

It also directly affects how much money people and institutions make via interest. So, long term, It is a bad thing to cut interest rates. It causes inflation, which makes all the money in your possession worth less than it was worth yesterday. It makes what you bring home every pay-day buy less every pay-day.

Lowering interest rates makes investor's money in the short term so it is a good way to get an influx of money from Joe and Jane Blow and outside institutions. That is about it. So it is a two edged sword.