The Federal Reserve announced it would cut interest rates for the first time in four years.

It lowered rates by half of a percentage point.

U.S. Congress Joint Economic Committee Chairman Sen. Martin Heinrich, D-New Mexico, issued a statement following the rate cut.

“For months, I’ve advocated for interest rate cuts to deliver the benefits of this economy to Americans. Families have had to endure unnecessary hardship for far too long because of needlessly high interest rates. Today, the Federal Reserve finally made the right call,” Heinrich said in the statement. “Lower rates mean that more families will be able to buy a home or a car without high interest payments looming over them, and their credit card bills will go down.”

 The Pew Charitable Trusts issued a report about how the rate cut could affect local and state governments.

“The Fed’s interest rate cut today represents a subtle shift, but one with real implications for state and local governments,” Pew Charitable Trusts Senior Officer Justin Theal, and one of the report’s authors, said in an emailed statement to the NM Political Report. “The benefits to states will unfold gradually, but the potential for lower borrowing costs, increased housing affordability, and slowing the pace of revenue declines is significant.”

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Potentially, the most immediate impact would be lower rates lowering borrowing costs for projects such as infrastructure projects and others.

“As the Federal Reserve begins reducing interest rates, state and local governments could benefit over the next several years. Lower borrowing costs and potential tax revenue boosts from increased economic activity and stronger stock market performance present positive opportunities for state and local finances,” the report states.

Broader fiscal advantages with lower interest rates likely outweigh challenges that could arise from interest rate income reductions in budget reserves, the report states.

“By proactively adapting their strategies, state and local leaders can maximize these benefits and continue to support their communities effectively in the evolving economic landscape,” the report states.