NEW YORK CITY, New York: Americans could soon feel both relief and frustration in their wallets after the Federal Reserve cut its benchmark interest rate on September 17 for the first time in nine months.

The central bank lowered its short-term rate by a quarter point, to about 4.1 percent from 4.3 percent, and projected two more cuts by year-end. The move reflects the Fed’s struggle to balance stubborn inflation above its 2 percent target with a weakening job market, its so-called “dual mandate” of stable prices and maximum employment.

“The dual mandate is always a balancing act,” said Elizabeth Renter, senior economist at personal finance site NerdWallet.

Here’s how the latest cut could affect consumers:

Mortgages: changes already priced in

The housing market anticipated the cut, meaning most homebuyers won’t see an immediate difference. Mortgage rates have been falling since January amid signs of economic cooling. Still, lower rates could help borrowers refinance over time.

“Whether it’s a homeowner with a 7 percent mortgage or a recent graduate hoping to refinance student loans and credit card debt, lower rates can ease the burden on many indebted households,” said Bankrate analyst Stephen Kates.

Savings: yields will slip

Savers may lose out as high yields on CDs and online savings accounts edge lower. Today’s top rates are around 4 percent for CDs and 4.6 percent for high-yield savings, but those returns will erode as cuts filter through. The national average for a traditional savings account is just 0.38 percent.

“There may be a few accounts with returns of about 4 percent through the end of 2025,” said Ken Tumin, founder of DepositAccounts.com, “but the Fed cuts will lower average yields.”

Auto loans: slow to adjust

Auto financing has remained expensive even as inflation cooled. According to Bankrate, the average interest on a 60-month new car loan is 7.19 percent, and analysts expect little immediate relief.

“Auto loan rates don’t move in lockstep with the Fed rate,” Kates said. “If the auto market starts to freeze up and people aren’t buying cars, then we may see lending margins start to shrink.”

Credit cards: modest relief

Credit card APRs average 20.13 percent, and while the Fed’s cut could help, the impact may take time.

“While the broader impact of a rate reduction … remains to be fully seen, it could offer some relief from the persistent budgetary pressures driven by inflation,” said Michele Raneri, vice president at TransUnion.

She added that easing borrowing costs might also reduce delinquency rates across credit card and personal loan segments.

Still, experts say the best defense remains aggressive repayment, balance transfers to lower-APR cards, or negotiating directly with lenders.