Over the last few years, the Fed has been paying attention to various economic indicators to determine how to proceed with interest rate decisions, one of which is job creation in the United States.

When a jobs report finds that fewer positions were added than expected, it can lead to the Fed lowering rates to prompt economic growth, which, in turn, creates opportunities to improve your financial situation.

Read Next: I’m a Self-Made Millionaire: Here’s How I Use ChatGPT To Make a Lot of Money

Explore Next: 4 Low-Risk Ways To Build Your Savings in 2025

“The Fed funds rate sets the base for most interest rates,” said Jay Zigmont, PhD, a certified financial planner and founder of Childfree Trust. “In banking, Fed funds are seen as the rate you get for a risk-free return.” Basically, whenever a bank makes a loan or issues a credit card, it increases the interest rate above the risk-free rate to reflect the risk it’s taking.

GOBankingRates consulted with financial experts to determine five ways that rate cuts caused by fewer jobs will trigger changes that can improve your finances.

You Spend Less Money On Interest

“Variable-rate products, such as a credit card, will change their rates over time as Fed rates go down,” said Zigmont.

That’s good news for anyone carrying certain types of credit card, mortgage or car loan debt. In simple terms, fewer jobs means that the Fed would likely consider cutting rates to boost consumer and business spending, ultimately creating more economic activity, and thus, demand for labor. Chris Motola, a financial analyst at National Business Capital, rate cuts exert direct downward pressure on credit card interest rates.

“Car loan rates are also affected,” he said, “though, generally not as quickly.”

If rates drop to stay competitive, you’ll lose less money to interest. Apply that money to the principal debt, and you could speed up how quickly you pay off outstanding loans.

Trending Now: Here’s How To Use AI To Quickly Start a Side Gig, According to Codie Sanchez

You Could Look Into Refinancing Your Major Loans

Even fixed-rate borrowers could benefit from the rate drop in the form of a refinancing opportunity.

“If you have fixed-rate loans, such as a mortgage or student loan, your rates won’t change as the Fed rates do,” warned Zigmont. “It may give you options for refinancing as rates come down, but you need to refinance to get the new rate.”

If you’ve been trapped in high interest rates without significantly paying down the debt, your opportunity for a better deal has arrived.

“At a certain point, after there is a significant decrease in interest rates, it can be in your best interest to refinance a loan, especially a mortgage,” said Melanie Musson, a finance expert with Quote.com, an insurer comparison tool. “Generally, if the interest rates are more than a point lower than where you locked in, it’s worth considering a refinance.”