The Federal Reserve announced a highly anticipated interest rate cut of half a percentage point during its September 2024 meeting. The decision is likely to impact U.S. consumers whose household budgets have been affected by historically high interest rates on credit cards, auto loans, and other types of loan products.

Silvio Tavares, President and CEO of VantageScore offered Reuters his insights on the September 2024 Fed rate cut, calling it “a strong and positive step.” But its effects will be gradual, with more cuts needed to help everyday finances, he said.

While consumers overall remain credit-healthy, many are facing mounting financial challenges including rising delinquency rates and the highest credit-card balances we’ve seen in more than four years,” Tavares added.

CreditGauge is VantageScore’s monthly analysis of U.S. consumer credit health. Read the latest insights here: https://www.vantagescore.com/lenders/credit-gauge/

Read more here: https://www.reuters.com/markets/us/us-borrowers-get-quick-relief-fed-cuts-rates-analysts-say-2024-09-18/