WASHINGTON— With markets placing a 98% probability on the Federal Reserve cutting its target rate by 25 basis points on Wednesday, a new survey from WalletHub finds that most Americans remain skeptical the move will make much difference in their lives—or the broader economy.
The WalletHub Fed Rate Survey reveals widespread consumer ambivalence despite the potential financial relief from lower borrowing costs. Nearly two-thirds (65%) of Americans say they feel indifferent or even upset about the rate cut, while almost 80% believe it’s still not a good time to borrow.
WalletHub projects that the quarter-point reduction will trim interest costs by billions across key lending categories. Credit card users could save about $1.9 billion in interest over the next 12 months, while mortgage holders stand to save roughly $9,720 over the life of a 30-year loan. Average rates on new-car loans are also expected to ease slightly—down about 12 basis points in the coming months.
Yet these modest savings appear overshadowed by broader economic worries. Three in five people believe the economy is worsening, and two-thirds say inflation poses a bigger threat than unemployment. In fact, 78% of respondents said they’re more concerned about inflation “stealing their money” than artificial intelligence stealing their job, underscoring the persistence of cost-of-living fears.
WalletHub analysts warn that while lower rates could deliver short-term relief, the underlying challenges remain significant.
“A second Fed rate cut in as many months will save consumers billions of dollars in the next year alone,” the analysis stated. “But don’t get too excited—trillions in debt remain, lenders are tightening standards, and cutting rates too quickly could reignite inflation.”
As the Federal Open Market Committee meets this week, the findings suggest the central bank’s latest policy shift may do little to ease Americans’ pessimism. Nearly 60% of respondents say they don’t trust government economic data, reflecting a deeper crisis of confidence even as borrowing costs edge lower.