The Federal Reserve cut its benchmark interest rate to 3.6%, the lowest in nearly three years, aiming to manage prices and encourage employment. Inflation remains higher than the 2% target, while the job market has cooled due to the government shutdown delaying crucial data collection.

For savers, falling interest rates will erode attractive yields on certificates of deposit and high-yield savings accounts. Three big banks have already cut savings account rates, but high yield savings accounts still offer rates around 4.35% to 4.6%.

Mortgage rates continue to hover around the lowest levels in over a year, influenced by the bond market and Treasury yield. Prospective homebuyers may see rates below 6.00% in the next year, spurring refinancing and new home purchases.

Credit card rates average 19.80%, down from a record high but still high. Reductions could result in savings for debtors, potentially stabilizing delinquency trends and easing financial stress.

Auto loan rates, on the other hand, may not decline soon, contributing to increased borrower delinquencies. The Fed’s rate cut could eventually provide relief, but analysts predict a slow impact on rates and delinquency trends.

The Fed’s rate cut signals support for the labor market, potentially leading to increased hiring. Cheaper borrowing for businesses could result in job growth, although it may take time for the effects of the rate cut to filter down to employers and workers.

Read more at Yahoo Finance: What the Federal Reserve rate cut means for you