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It wasn’t exactly shocking that the Federal Reserve opted to cut its benchmark interest rate by half a percentage point during its mid-September meeting. Due to cooling inflation, the general consensus expected the central bank to make its first rate cut last month. It was simply a question of whether it would be a less aggressive quarter-point cut or a more aggressive half-point cut.

But JPMorgan Chase CEO Jamie Dimon was quick to downplay the Fed’s mid-September decision, saying “it doesn’t mean that much” at a conference hosted by Georgetown University’s Psaros Center for Financial Markets and Policy. The reality, though, is that rate cuts have the potential to help borrowers while hurting people with money in savings.

Why the Fed’s rate cuts should matter to you

The Federal Reserve doesn’t directly set consumer interest rates. The interest rate you lock in on a mortgage, for example, is set by the mortgage lender you borrow from. Similarly, the amount of interest you earn from your bank will depend on the bank itself, not the Fed.

However, when the Fed’s benchmark interest rate rises, it tends to lead to more expensive borrowing and better rates on products like savings accounts and CDs. And when the Fed’s benchmark interest rate declines, it tends to lead to cheaper borrowing and less attractive savings account and CD rates.

It’s not exactly accurate to call the Fed’s rate cuts “a minor thing” like Dimon recently did. Granted, a single rate cut may not be so monumental. But a series of rate cuts, which is what’s expected, could significantly impact your financial situation.

What to do now that the Fed is cutting rates

The Fed’s mid-September rate cut is expected to be the first of many. That could mean different things for your finances.

On the plus side, it could make borrowing money cheaper. You might lock in a better interest rate on a personal or auto loan, or on a mortgage.

However, since the Fed’s rate cuts are likely to continue, you don’t want to sign a loan right now if you can help it. Waiting a few months for a few more cuts could leave you with a better interest rate on a loan and cheaper monthly payments.

On the flipside, you may not earn as much interest on the money you have in the bank as the Fed’s rate cuts continue. Now’s an important time to shop around for the best savings account rate available.

Also, you may want to consider locking in a CD before rates drop even more. Check out this list of the top CD rates you can snag today for some great options.

Jamie Dimon may be convinced the Fed’s interest rate policies aren’t so important. But while they may not be such a big deal to a person with his level of wealth, on an individual level, they could be quite significant, especially in the coming months. Pay attention to what the Fed does over the next few quarters in particular, since that could impact your finances.

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