Life is about trade-offs/A few other things

As Federal Reserve rate cuts will certainly ease the pressure off anything/anyone reliant on debt, let's do some very easy math on the flip side of that. That being the beneficiaries of interest income, particularly the lenders to the US government. In the 10 years leading into the first Fed rate increase in March 2022, the average 1 yr T-bill rate was .74%. On $1,000,000 of savings one was receiving $7,400 in annual income pre tax on average. A rate around 5% is of course $50,000 of income. That is quite a difference with the balance paying for many things, including vacations and trips to the restaurants. So, as the Fed cuts rates, those relying on that savings for spending, particularly baby boomers for cruises, and other things, that income will be reduced. In fact, that $50,000 annual income that becomes possibly around $40,000 by year end and to maybe $30,000 by next summer if the fed funds futures is accurate in today's pricing, is the difference in taking that cruise, vacation or buying that $65 filet instead of the $40 chicken. 

Bottom line, life is about trade offs and this is one of them as rate hikes and cuts have differing impacts on the economy. And it's not just money in money market funds but also a lot now in CDs that will be affected.