Expert: Interest rate changes take time to have impact

ALBANY, N.Y. ( NEWS10 ) — New data revealed that the Federal Reserve is on track to cut interest rates soon. The Federal had been keeping interest rates high in order to keep inflation from growing.

This week on Empire State Weekly, Arturo Estrella an Economics Professor with Rensselaer Polytechnic Institute explained that high rates reduce borrowing costs for both customers and businesses for mortgages, credit cards, and car loans. He said that, while lowering the interest rate from 5.3% may have a positive impact on the economy, it will take time to tell.

“If the Fed does something today it could take nine months to hit the real economy, and then for it to affect, inflation takes even longer. So you have to take a very long-term perspective when looking at these things, and it’s very difficult for the Fed in part because of these long lags,” said Estrella.

Also this week, Brian Fessler, the Director of Government Relations with the NYS School Boards Association, explained the recent discussion around foundation aid. The formula, that determines how much aid schools get from the state, will be studied by SUNY’s Rockefeller Institute of Government, which will then suggest changes. He explained that changes to the formula can help the state better serve school needs.

“The state has passed on a lot of requirements onto school districts for a lot of legitimate reasons, or a lot of legitimate issues, but there’s also I think an expectation upon school districts to make sure they are as safe and secure and prepared for their time both in the classroom, but then when they graduate,” said Fessler.

Also this week, Henry Rosoff, a reporter with WPIX in New York City, gave an update on a recent subpoena from federal investigators to NYC Mayor Eric Adams over his 2021 campaign probe. To see these interviews and more, here is a list of how you can watch Empire State Weekly in your area of New York:

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