Morning Business Report: Federal Reserve rate cut boosts markets as Warner Bros bidding war heats up

The Federal Reserve has lowered its benchmark interest rate by a quarter-point.

(LILAMAX)- The Federal Reserve has lowered its benchmark interest rate by a quarter-point — a move expected to ripple through nearly every corner of consumer finance, from credit card APRs and mortgages to online savings accounts.

Experts say consumers may soon see slightly lower annual percentage rates on credit cards, which determine the yearly cost of borrowing. Auto loans, which follow the five-year Treasury yield — itself influenced by the Fed rate — could also dip. Still, analysts caution that the effect on monthly car payments may be modest, given other major factors: credit history, vehicle type, and the size of any down payment.

Mortgage rates, already trending downward in recent weeks, may continue to fall as well, offering some relief to homebuyers navigating a tight housing market.

On Wall Street, the reaction was swift.
The Dow surged nearly 500 points following the decision. While the Fed signaled it expects only one rate cut next year, investors are betting more could follow, signaling optimism that borrowing costs may continue to ease in 2026.

The day’s business news also included major movement in the entertainment sector.
Investors are anticipating a bidding war for Warner Bros. after reports surfaced that Paramount CEO David Ellison met with a group of Warner investors in New York. According to The Wall Street Journal, Ellison encouraged them to press Warner management and board members to favor Paramount’s offer over Netflix’s recent $83 billion bid. Several attendees left the meetings believing Paramount is likely to raise its bid, intensifying the race for control of the historic studio.

Looking ahead to higher education, the U.S. Department of Education is rolling out a new layer of transparency for families applying for federal financial aid. Soon, applicants will be able to see salary outcomes of graduates from the colleges they’re considering — comparing earnings to statewide and national benchmarks. Officials say the added clarity will help students make more informed decisions about student debt.

In the scientific world, the first-ever GLP-1 weight-loss treatment for pets is under development. Okava Pharmaceuticals says its “first-in-class” device — now in clinical trials — could have major implications for diabetes, kidney disease, healthy aging, and longevity in pets. A study is underway to evaluate the drug’s impact on cats, with a similar trial planned for dogs.