The Federal Reserve’s third interest rate cut of the year will likely have consequences for debt, savings, auto loans, mortgages and other forms of borrowing by consumers and businesses

The reason is clear, experts told ABC News: Interest rates will remain historically high even after a small cut. The Fed likely does not view a mild uptick of inflation this fall as enough to deviate from a path of rate cuts it laid out earlier this year, they added.

The Fed cited indicators of an expanding economy and an easing labor market after its other rate cuts. This is the third time rates have been cut this year, but economists don’t expect as many cuts in 2025.