KENNESAW, GA — A metro Atlanta area economist has weighed in on the federal reserve cut and is analyzing what it will mean for people borrowing money.

Fed officials, led by Chair Jerome Powell, had kept their rate unchanged this year as they evaluated the impact of tariffs, tighter immigration enforcement, and other Trump administration policies on the economy, officials said.

Kennesaw State Economist Roger Tutterow says it is not a surprise that the federal reserve cut its key interest rate by a quarter point and projected it would do so twice more this year.

“There is a little worry still that even as long term rates come down, mortgage rates are still remaining a little bit elevated,” Tutterow said.

He adds it is good news for those who borrowed money from banks that are tied to the prime rate who should see their debt service come down.

Fed officials also signaled they expect to reduce the key rate only once next year.