For the first time since March 2020, the Federal Reserve is cutting interest rates. It’s welcome news for people who have put off big purchases and businesses wanting to make improvements. We wanted to see when and how we could see an impact here in Nevada. To answer that, we welcomed RCG Economics Principal John Restrepo to Nevada Week.

One of the big questions about the interest rates cut: how might Nevada’s housing market be impacted? Restrepo says these cuts could potentially create more demand for homes. Nevada, like many places in the country, faces a housing shortage.

“The increase in interest rates could create mortgage demand and increase demand for housing, as opposed to reducing housing prices,” Restrepo explained. 

And for people who are considering purchasing or refinancing a home? 

“Wait. Wait for further cuts,” Restrepo recommends. “Wait to see what happens, April, May of next year. We have time, let’s not rush into anything. You know big purchases like that, including cars… things are going to change over time, let’s see how it all unfolds.”

As for credit card debt, Restrepo first explained Americans have an excessive amount of credit card debt. 

“You know that’s one thing Americans agree on, whether they’re conservatives or liberals, is buying things on credit. We’re not a society that lives within their means necessarily.” Restrepo does not believe the interest cuts will make a major difference to credit card debt because it is already so high.

Could the interest rate cut affect the presidential election? Restrepo doesn’t think so. 

“It takes time for an interest rate cut like this to really flow through the economy, see the effects of it. We don’t know who it will benefit at this point.” 

The Federal Reserve also acts independently from the government. Citing Federal Reserve Chair Jerome Powell, Restrepo commented “All countries that have an independent central bank have the most stable democracies, have the most stable economies. The last thing you want to do is have politics involved in the Federal Reserve or Central Bank decisions.”