The benchmark rate was lowered by 0.25 points from 4.25% to 4.5% on Wednesday, marking the Federal Reserve's third consecutive interest rate drop of 2024. A full percentage point lowered the rate with this most recent decrease, which comes after a 0.25% cut in early November and a more significant half-point cut in September. These rate reductions provide relief for small business owners, particularly those in charge of credit card balances, business loans, and other debt.