And we're just about a couple weeks away From an expected rate cut by the Federal Reserve the central bank has kept rates Higher in an effort to Tamp down Inflation but it hasn't raised or Lowered them since July of last year Current borrowing costs are at levels Not seen since before 2007 to 2008 which Is dur during the financial crisis so CBS News contributor jaier David is here With me now in studio 57 to break it on Down he's tapping away at his computer Getting all the numbers up so thanks for Joining us listen you know what's been Happening over the past several weeks is All these numbers are getting adjusted Right and we're I I feel like I'm just Swinging from one end to the other oh it Was good news but now it's bad news it's Changing again but now I feel like Really positive about this this month we Are likely to see a 25 basis point cut Um on our the interest rate Federal Interest rate uh what's that going to Mean for everyday Americans so we're Finally getting what we've been hoping Wishing praying for for the better part Of the last two years lower rates that's Good news for anyone that has a credit Card anyone that has an auto loan anyone That is hoping wishing and praying to Maybe get a mortgage at some point right This is you know and that's the big Thing here because that's that's really
What's happening and and a big part of That is because people are staying in Rentals longer because they just can't Buy a house they can't afford it yes Yeah and I was thinking to myself that's Going to I I suppose when it comes to All these changes it's the people Looking for houses that are going to see The most immediate impact cuz that that Interest rate can change you know right And credit cards too like and yeah Because APR is really high as much as we Talk about as high as mortgage rates are Credit card aprs are in the double Digits these are at like near record Highs if not record highs and so some of That will start to ease and you'll see a Little bit of relief in your statements Not a whole lot if you're carrying Balances and again I always say the best Thing that you can do for yourself is Pay off on a monthly because if you're Carrying balances you're going to be Paying I'm glad you said that cuz I was Going to say that's what experts say pay Off those credit cards for Uh any reference or comparison to 2007 Is going to have most people on edge how Does today differ compared to what Happened back in the 2000s so the Interesting thing there's a Counterintuitive fear that's been Percolating in the minds of investors Wall Street that rate Cuts may actually
Lead to a recession so there's this data From Ry Holt's wealth management that Shows that since 1970 this is a really Interesting statistics and I wish I Could pull the graphic up but fed Easings have led to recessions or seen Recessions happen within 12 months about 10 time since 1970 and that's narrowly Divided between rate cuts that happened But didn't cause recessions about six Times so there's this whole fear about Okay we've been debating this a very Long time did the FED keep rates too High for too long and now as they start To ease are going to give us some Nominal 25% maybe we'll get a 50 basis Point cut but um the whole idea being Because they held higher for longer the Economy adjusted but now it's in a much Rougher place if had they cut earlier so The whole question is will the you know The fed's actions you know were scram They've been scrambling to avoid a Recession or a hard Landing of sorts Right um now there's a whole you know Debate about whether or not these rate Cuts are coming at a time that's kind of Too little too late right if you've been Living under sort of this weight of this Inflation you're not in the same Financial position that you would have Been in before so even if the and the Jobs Market is in a very different place Now it's much it's you know it's been
Very very tight now it's much looser There are a lot more layoffs still you Know to put it in context the Unemployment rate still historic Low by Historical standards but it's not the Go- go market that we saw 2021 through 2024 that's interesting well let's hope It's not that and it just it operates The way we were hoping listen before I Let you go I got to ask you about this Direct TV Disney Rift um my dad is a Huge US Open fan and I know if there was A blackout I mean I would be hearing About it nonstop so I can imagine how Disappointed fans are um what's the deal What's going on what are the financial r Two multibillion dollar companies are Fighting over money and I wish I could Say it better than that but that's what It is look the background here is these Fights happen a lot um and they're it's Fairly common but like it's a huge Inconvenience to people like your dad And me who's in fact a direct TV Subscriber it's days before the NFL Kickoff I'm not happy um so there's a Whole thing here but to keep in mind Like look the Aeros streaming has made It really expensive for cable companies To like keep customers from cutting Cords so people see their bill they Complain why am I paying so much I'm Going to cancel this makes it really Hard for them to justify giving some
Sort of incentives just to keep Customers holding on Disney is a big Player in the market biggest name in Show Biz huge marking power and when They're backed up against the wall they Play hard ball like they do here yeah And we already know that Disney has had Sort of a rough few years itself with Its own streaming platform and all that Sort of stuff so it's tough for media uh Companies across the board uh de thank You very much
