For the first time since the 2008 financial crisis of Federal Reserve cut interest rates, the central bank lowered the benchmark federal funds rate by 1/4 percentage point just yesterday.

The decision could make it easier for consumers to borrow money on everything from credit cards.

Two car loans.

CBS News business analyst Dill Schlessinger is here with a look of the Fed's decision and what it means for your wallet.

I'm a little confused because the economy is supposed to be doing well.

And yet we have the Federal Reserve cutting into interest rates.

Why?

Well, the Fed says that global growth is starting to impact us.

Brooke things.

They're slowing down.

So you're right.

Even the central bankers, they're saying things.

They're good, they're not great.

They're concerned about that deceleration and one of the things they noted as a rationale for cutting rates, the trade uncertainties, which is really crimping growth.

I think that's a big issue and finally they're worried that prices are not rising fast enough and maybe seem seem a little bit weird to imagine this.

The Fed wants a little bit of inflation but not too much inflation.

And the reason is they want people to get wage increases and to spend more money in the economy.

That was their joint rationale.

How does this affect consumers?

That's the best question.

Because, you know, really, we only care about the Federal Reserve as it pertains to our lives and, weirdly, don't blow us over.

The Fed controls almost everything we do.

So let's say you're a saver.

You got a bunch of money in the bank.

You're not happy.

Fed cuts rates.

You're gonna earn a little less interest.

Conversely, if you are a borrower, you're starting to dance a little jig.

I know my credit card balance.

I want to whittle it down.

It is expensive to carry credit card balances.

It'll get a little less expensive.

What about mortgages?

Student loan debt?

Jill So mortgages key off of a different rate.

It's a longer term rate.

But the good news there is that long term mortgage rates are at three year lows, and when you think about student loans, probably not a lot of help.

Their student loan rates for the federal program are set once a year.

They were just set early in July.

There down a little bit, but they're not gonna move.

And so those air in stone.

If you have a private student loan and it's a variable loan, you may see some relief.

But here's what everyone's afraid of.

Does this mean that there are signs a recession is on the horizon?

That's not what the Federal Reserve is saying.

And I don't speak to economists who say an imminent recession is upon us.

What they're saying is, this slowdown is happening.

The Fed wants to get ahead of it.

That's the reason why they're cutting rates today.

Whether or not we see a recession anytime soon is anyone's guess.

Anyone's guess you heard it from, Jill says.

It's all right.