The Fed's actions today were widely expected and should have at least some postive effects for consumers, despite being unlikely to stave off a U.S. recession. Consumers will find lower mortgage rates, car loans, and credit card interest rates; however, savings accounts will earn much less as the move is designed to encourage consumers to spend or invest their savings. The emergency rate cut comes after a massive drop in the world stock markets ahead of a widely expected U.S. recession. Consumers may also find themselves with more money with an anticipated tax refund...

From US News:
Consumers aren't directly affected by today's Federal Reserve cuts in short-term interest rates, but they could be soon, as banks respond to the opportunity to borrow money more cheaply.

Mortgages: Consumers with good credit and money for a down payment are likely to find lower mortgage rates. "It will be cheaper to borrow money if you can get the loans at all," says David Wyss, chief economist at Standard & Poor's, noting that banks have grown more careful about lending money to risky consumers. "If you have bad credit, or if you're trying to buy with nothing down, as many have been doing over the last few years, it's a lot harder," he adds.

Car loans: Car loans also tend to respond quickly to changes in the prime rate, says Wyss, so those in the market for a car could find it cheaper to borrow money.

Credit card debt: Many cards come with fixed interest rates, which are unlikely to be affected by the Fed's decision, and even those with variable rates are unlikely to see changes anytime soon. "Credit card rates move very sluggishly," Wyss says.Savings: Interest rates on savings accounts, treasury bills, and municipal bonds tend to move together, so those who are storing money in savings accounts, certificates of deposit, or money market funds will most likely see their money earn less. "That is part of the Fed's planning. They want people spending (or investing), not saving," Levenson says. "That's what low interest rates do."

Savings: Interest rates on savings accounts, treasury bills, and municipal bonds tend to move together, so those who are storing money in savings accounts, certificates of deposit, or money market funds will most likely see their money earn less. "That is part of the Fed's planning. They want people spending (or investing), not saving," Levenson says. "That's what low interest rates do."