Fed Cuts Rates, But Shoppers Still Feel the Squeeze

The Federal Reserve dropped interest rates by a quarter point Wednesday, offering some relief to consumers—but many are still hesitating to make major purchases as financial pressures persist.

While the rate cut is welcome news, credit card interest rates remain stubbornly high, averaging more than 22% as of May. This reality is forcing many shoppers to change their spending habits, with some avoiding credit cards altogether in favor of cash and debit purchases.

The housing market is seeing some movement, with 30-year fixed mortgage rates now averaging around 6.35% —the lowest in about a year. However, potential buyers and sellers are still taking a wait-and-see approach, hoping rates will drop further.

Financial experts are offering strategies for consumers looking to manage high-interest debt, including exploring balance transfer credit cards that offer promotional periods with zero percent interest rates.

Watch the full report above to hear directly from shoppers about how they're navigating today's economy and get expert tips on managing debt in this challenging financial landscape.