The Federal Reserve recently cut its key interest rate for the first time since December 2023. 

The move marked a shift in monetary policy as the central bank responds to what Fed Chair Jerome Powell described as a “really cooling off” labor market, while continuing to monitor inflation.

MPR News guest host Catharine Richert and senior economics contributor Chris Farrell talk about the reasoning behind the Fed's decision and what the rate changes could eventually mean for your credit cards, mortgage, savings account or investments. 

Guest:

• Neel Kashkari is president and CEO of the Federal Reserve Bank of Minneapolis. It’s one of the Federal Reserve System’s 12 regional banks with a district that includes Minnesota, North Dakota, South Dakota, Montana, Northern Wisconsin, and the Upper Peninsula of Michigan.

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