After an all-out fight against inflation over the past two years, the Federal Reserve recently voted to lower interest rates by a half percentage point. The Sept. 18 move by the central bank was bolder than many investors expected.

The Fed cut its short term interest rate by 0.50%. How will this affect mortgage rates, auto loans, and credit cards? Does the cut indicate a problem with the economy?

WASHINGTON (NEXSTAR) – The Federal Reserve cut interest rates Wednesday for the first time in four years. Over time, rate cuts mean lower borrowing costs on mortgages, car loans and credit cards but experts say it will take a series of cuts to really see those effects. Stocks shot up after the Federal Reserve announced a .05 interest rate cut.