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When inflation surged in the wake of the pandemic, it created a tough financial situation for a lot of people. Many Americans had to raid their savings accounts simply to keep up with expenses like gas and groceries.

In response to rampant inflation, the Federal Reserve raised its benchmark interest rate 11 times between 2022 and 2023. But since inflation has slowed this year, the Fed hasn’t needed to raise interest rates.

In fact, in mid-September, the Fed actually lowered its benchmark interest rate by half a percentage point (0.50%). And that rate cut is likely to be the first of many.

You should know, though, that the Fed’s interest rate cuts have the potential to impact your finances in different ways. So it’s important to know when future cuts may be coming — and how to manage your money in light of them.

We could see another rate cut in early November

The Federal Reserve has two more policy meetings scheduled for 2024. The first is set to take place Nov. 6 and 7, while the second is set for Dec. 17 and 18.

The Fed typically announces rate-related movement (or lack thereof) during the second day of its two-day meetings. So the next opportunity for the Fed to cut rates is Nov. 7. And if data shows that inflation dipped in October compared to September, then the Fed will likely move forward with another rate cut next month.

What the Fed’s rate cuts mean for you

Although the Fed doesn’t set interest rates for banking products or loans, when the Fed raises its benchmark interest rate, savers tend to earn more interest and borrowers tend to pay more interest. On the flipside, when the Fed cuts rates, borrowing tends to get cheaper but banks tend to get stingier with account APYs.

Given that there’s a good chance we’ll see another rate cut in early November, now’s a good time to take extra cash you have available and open a CD. Although rates aren’t quite as high as they were before September, some short-term CDs are still paying close to 5.00% APY.

Check out this round-up of the best CD rates to lock in a great deal before rates drop further, which may happen as soon as next month.

It’s also a good time to boost your credit score in case borrowing rates fall substantially in November. As it is, mortgage rates have declined in recent weeks. But if the Fed makes another rate cut in November, you may find that it’s cheaper to not only sign a mortgage, but take out a personal loan or finance a car as well.

The higher your credit score is, the more likely you are to snag a competitive interest rate on any loan you sign. So in the coming weeks, review your credit report for errors and take other steps to raise that number, like making timely debt payments and, if possible, paying down your credit card balances.

Of course, it’s not guaranteed that the Fed will make another rate cut this November. But it’s a strong possibility that you should prepare for.

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