The Federal Reserve on Wednesday cut its benchmark interest rate for the first time in four years. It went from a 23-year high of 5.25%-5.5% to 4.75%-5%, a reduction of half a percentage point. Jerome Powell, chairman of the Federal Reserve, hinted that a rate cut was on the horizon after the top measure for inflation showed it fell to 2.5%, near the 2% target, in August. That's down from its peak of 9% in the middle of 2022. RELATED STORY | How Olympian Lauryn Williams pivoted to a financial planning career"Recent indicators suggest that economic activity has continued to expand at a solid pace,' the Federal Reserve said in a statement. Wall Street reacted positively to the interest rate cut. The Dow jumped immediately more than 100 points upon the news. A lower interest rate will have a ripple effect across the economy, and many consumers can take advantage. RELATED STORY | What will Fed rate cuts mean for consumers?"So, the big four that people generally think about are going to be savings account yield rates, car loan rates, mortgage rates and then credit card interest rates that we're paying," said Aaron Cirksena, CEO of MDRN Capital.Mortgage rates are currently at their lowest rate since February 2023. The average interest rate for a 30-year mortgage is 6.2%, according to Freddie Mac.