Thanks to its latest decision on Wednesday – its final one for 2025 – the Federal Reserve has now reduced its key overnight lending rate by 1.75 percentage points since it began its rate-cutting cycle in September 2024.

Top high-yield savings accounts still pay up to 5.00% APY, but with another Fed rate cut announced last week, those yields could decrease.

If the Fed holds interest rates steady as a means of protecting against inflation, it risks a deeper slowdown of the labor market. On the other hand, by lowering rates to stimulate hiring, the Fed threatens to boost spending and worsen inflation.

With another Fed rate cut looming, it helps to know the recent history behind rate cuts and mortgage rate reactions.

The highest money market account rate available today is 4.22% Changes from the Fed or your bank can quickly change money market rates Online banks typically offer the most competitive yields on the market Current Money Market Rates As of today,

Learn how interest rates affect savings, borrowing, and the economy, impacting personal and business finances. Discover their role in investments and economic trends.

Why have they been cut and what does it mean? - Here the Press Association looks at what the decision means and what the Bank of England expects to happen to the economy.

In addition, deportations may be impacting the numbers and leading to lower job growth, but in a way that might present lower economic risk. That said, unemployment continues to move up, now to 4.6% and even though the increase has been gradual up to November’s report, rising unemployment has historically elevated recession risk.

Discover how interest rates affect corporate capital structures by influencing debt costs and financing decisions, shaping how companies balance debt and equity.