The Federal Reserve announced a quarter-point cut in its benchmark borrowing rate, marking the third consecutive reduction this year. This move aims to stimulate a cooling economy and counteract previous rate hikes intended to curb inflation. The Fed's decision impacts various borrowing rates, including mortgages and credit cards. Despite these cuts, mortgage rates remain around 7%, higher than some expected. Looking ahead, the Fed projects two more rate cuts by 2025, though economic conditions and fiscal policies, such as potential trade wars, could influence future decisions. The Fed emphasizes that its decisions are based on economic indicators, not political changes, and it remains cautious about aggressive rate cuts despite earlier expectations.