The Federal Reserve recently made its final interest rate cut of the year, bringing rates down between 4.25 and 4.5 percent.

"We are committed to maintaining our economy's strength by supporting maximum employment and returning inflation to our 2% goal," said Federal Reserve Chairman Jerome Powell.  "The economy is strong overall and has made significant progress towards our goals over the past two years.”

According to economic professor Dr. Ken Louie with Penn State Behrend, the decision means interest rates for things like car loans, mortgages, credit cards, and other debt will go down.

"The Fed cut rates because compared to two years ago, the inflation rate has been gradually going down," said Dr. Louie.  "We are in a better place in terms of the rate at which prices are going up."

However, the Consumer Price Index for November showed prices up 2.7 percent compared to last year, up slightly from October.

Meanwhile, grocery prices were up 1.6 percent in November.

"Food prices are certainly still going up," said Dr. Louie.  "You also have shelter, housing prices.  You have transportation services.  You have medical services, so really it's still a broad-ranging problem we have."

In 2025, Dr. Louie expects the Federal Reserve to remain cautious about lowering rates.

"The major takeaway is that inflation often is very stubborn," said Dr. Louie.  "Once it gets high enough, we can bring it back down somewhat, but it takes quite a while to bring it down substantially, back to the level where the fed has its target, which is two percent."