Have you noticed that the cost of groceries and other expenses are not increasing as quickly as they were this time last year or the year before? Fortunately, inflation has slowed, which is a good thing for our budgets.

The Federal Reserve is also clearly pleased with the way inflation has eased. In September, the central bank lowered its benchmark interest rate by half a percentage point in response to slowing inflation. And when it meets again this week, on November 6-7, there is a good chance that a second interest rate cut will be announced.

This decision could impact your finances, and it’s worth taking these key steps before that happens.

1. Open a CD

Although the Fed does not set rates for certificates of deposit (CDs), when its benchmark interest rate falls, banks start paying less. In fact, you may have already noticed that most CDs aren’t paying 5% like they were earlier in the year. This drop is the result of the Fed’s rate cut in September.

If you want to hold on to a CD before rates drop again, act quickly. The good news is that many banks still offer great rates on CDs. Click here for a list of the best CD prices available today.

2. Check your credit score

A Fed rate cut will likely result in lower interest rates on savings accounts and CDs. That’s the bad news.

The good news is that lower rates should also lower the cost of borrowing overall. So now is a good time to check your credit score and see if it needs a boost. If so, you can start developing a plan to raise your credit score so you can take advantage of lower borrowing costs for things like auto or personal loans.

Of course, increasing your credit score can take time. But it’s important to check your score now so you know what you’re dealing with. From there, you can start making sure your bills are paid on their due dates and work to reduce your credit card balances, which could lead to a higher credit score down the road.

It’s also helpful to check your credit report for errors. Correcting a mistake that’s working against you could cause your credit score to rise pretty quickly, which is a good thing in a time of falling rates.

3. Use a real estate agent

There is no guarantee that mortgage rates will fall as soon as the Fed makes its next rate cut. But there’s a good chance they’ll fall in the coming months, which could make homeownership more affordable.

If you think you might want to move forward with purchasing a home in the next few months, make a few calls to find a real estate agent as soon as possible. It’s best to do this before rates drop, because from then on, the top agents in your area may find themselves too overburdened to take on new clients.

Of course, there is a chance that the Fed won’t will eventually cut interest rates at its meeting later this week. But if this is the case, it is very likely that it will cut rates again at its December meeting.

The Fed is expected to make several rate cuts over the coming year to reverse the hikes it implemented in 2022 and 2023. So all of these measures make sense, regardless of what happens on the 6th and 2023. November 7.