The Federal Reserve is expected to cut interest rates for the second time this year on Thursday, with the decision coming less than two months after its surprise massive rate cut in September.

According to forecasts from economists surveyed by FactSet, the Fed is expected to cut borrowing costs by 0.25 percentage points, half of what it cut in September. That would drop the federal funds rate — the interest rates banks charge each other to borrow money — from the current 4.75% to 5% to a range of 4.5% to 4.75%.

Using the Federal Reserve's preferred measure of inflation fell to 2.1% last monthjust shy of the Fed's 2% target, the central bank is easing the brakes it applied when inflation hit a 40-year high during the pandemic. High borrowing costs have made buying houses and cars more expensive.

If the Fed cuts interest rates by 0.25 percentage points on Thursday as predicted, the move will provide some additional relief for consumers, even if the initial benefit will be small, experts say. The Fed is expected to cut interest rates further at its next meetings, which could lead to greater savings for borrowers.

“Once a few more cuts are made over the next few months, the impact will add up to something that will move the average person struggling with debt,” Matt Schulz, chief credit analyst at LendingTree, said in a statement E-mail. “However, the effect of these cuts will not be very noticeable for the time being.”

Here's what you should know about Thursday's Fed meeting.

Will the Fed cut interest rates?

Yes, the Fed is expected to cut its key interest rate by 0.25 percentage points on Thursday, November 7, according to economists surveyed by FactSet.

“Continued disinflation in price and wage growth and strong productivity growth are likely to encourage a gradual recalibration of Fed policy with a 25 basis point rate cut after the election, following an outsized 50 basis point 'catch-up' rate cut in September,” noted EY chief economist Gregory Daco in a report dated October 31st.

Daco expects the Fed to cut interest rates by an additional 0.25 percentage points at each meeting through June 2025. This means that the key interest rate will rise to 4.4% in December and to 3.4% in June.

When will the Fed's interest rate decision be made?

The Fed will announce its decision on November 7 at 2:00 p.m. ET, followed by a press conference with Fed Chair Jerome Powell at 2:30 p.m

The Fed's next interest rate decision will be announced on December 18th.

How low will interest rates be in 2024?

The Fed is expected to cut its key interest rate to a range of 4.25% to 4.5% at its December meeting. That would represent a full percentage point cut from pre-September levels, when the key interest rate hit its highest level in more than two decades.

But that doesn't mean mortgage rates or other borrowing costs will fall to that level, because lenders like mortgage lenders and credit card companies make money by charging consumers higher rates than the federal funds rate.

Still, borrowers should feel some relief. Schulz said credit card fees have already fallen slightly, although they are still near record highs.

“While they will almost certainly continue to decline in the coming months, no one should expect dramatically reduced credit card bills any time soon,” he added. “Unless the Fed dramatically accelerates its rate cuts, it will be a while before these cuts have an impact of more than just a few dollars per month.”

Will mortgage rates go down?

Despite the Fed's rate cut in September, mortgage rates have risen over the last month, with the average interest rate on a 30-year fixed-rate loan at about 6.72%, according to Freddie Mac. That's up from September's low of 6.08%.

Although the Fed's interest rate decisions impact mortgage rates, the cost of home financing is also influenced by economic trends such as unemployment. Meanwhile, Treasury yields rose on worries about rising U.S. debt and the presidential election.

“As long as investors worry about what the future might hold, Treasury yields, and therefore mortgage rates, will be hard-pressed to fall and stay low,” noted Jacob Channel, senior economist at LendingTree.