The Federal Reserve has cut its benchmark interest rate by 0.5%, a significant reduction aimed at easing borrowing costs amid milder inflation projections. This change is expected to benefit Houstonians by making mortgages, auto loans, and credit card payments more manageable, particularly for first-time homebuyers and working-class individuals. However, savers may face lower returns on savings accounts. Financial expert Mark Madrid emphasizes the importance of being proactive in exploring lending options to maximize benefits from the rate cuts.