Your savings generate higher or lower returns. Consumer spending rises or falls. Credit card rates increase or decrease. Unemployment goes up or down. Consumers aren't the only ones borrowing money.
Businesses also borrow to expand.
When interest rates go up, the economy tends to slow because it becomes more expensive to borrow money. This can affect businesses' ability to expand, for example, or consumers' ability to buy a home. Conversely, when interest rates fall, it becomes easier to borrow money. For example, economists expect the most recent cut, over time, to cheapen the cost of mortgages, car loans, and credit card payments. A lower cost of money means more disposable income for consumers and higher profits for corporations.