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What effect does the federal rate cut have on Britney Spears custody battle?

My girlfriend is an avid supporter of E! network (or it could have been ET, I am not sure to be honest) and so I get a healthy (or unhealthy, depending on who you ask) dose of pop culture every day. Anyway they made a quick mention the other day of ‘The Federal Reserve cut rates, what do celebrities think of the economy?’ Well, I’m pretty sure most celebrities don’t care, but I can tell you what it means for you.

First off, what happened?
Earlier this week the Federal Reserve cut the prime lending rate by .75%, which is the interest that banks charge each other for short term loans.

How does it affect me?
The main benefit to consumers is that interest rates on almost everything will go down. Because banks are charging each other less, they can also charge you less. Mortgages, car loans, and even credit cart interest rates will all go down. This is great news if you are planning on making a big purchase in the short term. In fact thats what they WANT you to do…

So what is the idea behind a rate cut?
The idea is to free up peoples money so that they keep buying goods and invest in the stock market to keep the economy strong.

There are pros and cons to doing so and it really is just a temporary fix, but that will have to be the subject of a whole separate article.

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