The Federal Reserve on Wednesday announced a widely expected interest rate cut. Wednesday’s cut was the Federal Reserve Board of Governors first this year. It’s now set at 4% to 4.25%. The interest rate cut affects consumers in many ways, including mortgage rates, credit card interest rates and auto loan interest rates. NBC 7's Kelvin Henry explains. | NBC 7 San Diego

The Federal Reserve cut its key interest rate by a quarter-point today and projected it would do so twice more this year. The move is the Fed’s first cut since December and lowered its short-term rate to about 4.1%, down from 4.3%. Fed officials, led by Chair Jerome Powell, had kept their rate unchanged this year as they evaluated the impact of tariffs, tighter immigration enforcement, and other Trump administration policies on inflation and the economy. The cut comes amid an unprecedented press