The problem as I see it is that the elevated prices/costs have already dug a deep hole into the savings for many. People and businesses alike. A rate adjustment won't mean much for the majority, especially since they'll need to have the cash and/or credit available to be able to take advantage of the rate cuts. No cash or credit, and a rate adjustment won't mean much to the average person. At least not enough to get them to go out and spend.
Want to buy a home? Hopefully the increased costs we've all faced has eroded your savings and the down payment. Want to buy a car, despite the rising repossessions, and the fact that dealers still aren't budging on the sticker prices. Better check your credit report if you've fallen behind on payments over the past year. Then there's always the large increase in credit card in general. In other words, you need to have the credit, to be able to spend the credit.
Will this just be another scenario to prove that so-called free markets really need to be 'Free'?
Don’t do it. Leave the rates alone. If at all, raise them another half a point. It’s all credit buying. Gotta stop it.
Federal Reserve controlled Interest rates are a very blunt instrument in trying to centrally-plan the economy. Every Federal Governor since Marriner Eccles has explained this.
Far more immediate and consequential, for good or for ill, in trying to stimulate demand (oddly never restrain demand) or implement industrial or social policy, is government tax policy, fiscal policy, and public debt.
Politicians and Fed.gov love to ignore this fact.
The car dealership has very limited room as they’re under contract. They might be able to adjust fees and add-ons but that’s where they actually make money. Lowered purchase MSRP is up to the manufacturer. If the manufacturer changes the price it may impact their stock price which could start a cascading self destruction. The market is much more complicated than the average person realizes.
Another election year gimmick that will tank what little interest rates have returned to savings.