FOMC cut — quick video from the San Francisco Fed

The Federal Reserve cut its benchmark rate today by 25 basis points — the first cut since December.

Potential impact of the rate cut and things to consider:

• Mortgage and refinancing timing: evaluate any potential impact on current rates, lock windows, and any planned purchase or refinance.

• Short-term cash posture: this reduction likely means return on cash, money market, CDs and Tbills will decline.The Fed is balancing its two pronged mandates: maximum employment and stable prices. 

Lower fed fund rates typically are positive for the equity market, but like all things with the equity market, nothing is set in stone.

I filmed a short clip in front of the San Francisco Federal Reserve to show a point many people miss: the Fed is not only a single office in Washington. It operates as a system of 12 regional Reserve Banks and the Twelfth District — the San Francisco Fed — contributes local economic intelligence that helps inform national decisions.