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Federal Rate Cut: Will It Lead to a Better Economy? Expert Weighs In

The Federal Reserve's 0.25% rate cut aims to stimulate the economy amid slowing job growth, with experts predicting further reductions this year to support housing affordability.

  • The Federal Reserve cut U.S. interest rates by 0.25% this week, the first cut in nearly a year, sparking optimism in Idaho's housing market.
  • This cut follows months of political pressure and economic uncertainty, with one FOMC member dissenting for a larger 0.5% cut.
  • Lower mortgage rates have reduced borrowing costs, making homes more affordable, especially for first-time buyers who can now access down payment assistance.
  • Chuck Kracht said borrowers can bring as little as $500 plus a second mortgage for assistance, while Sarah Weaver noted the cut signals government attention and renewed buyer confidence.
  • The cut could increase home sales and construction, contributing to an anticipated trend of further rate reductions boosting housing and interest-sensitive sectors.
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KIVI broke the news in on Thursday, September 18, 2025.
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