Federal Reserve leaders are unified in their resolve to quash the worst bout of inflation in four decades. They just no longer agree on how high to keep U.S. interest rates to achieve their goal.

The Federal Reserve's third interest rate cut of the year will likely have consequences for debt, savings, auto loans, mortgages and other forms of borrowing by consumers

Rising Federal deficits and debt, coupled with potential Trump tariffs, could exacerbate inflation, forcing the Fed to hike rates, negatively impacting the stock market.

The reason is clear, experts told ABC News: Interest rates will remain historically high even after a small cut. The Fed likely does not view a mild uptick of inflation this fall as enough to deviate from a path of rate cuts it laid out earlier this year, they added.

The Federal Reserve cut interest rates by 0.25% on December 18 but an interest rate cut is unlikely when the Fed issues its next policy decision on January 29.

A quarter-point cut this month was the right move to avoid an overly hawkish stance that would threaten a serious economic slowdown, according to San Francisco Fed President Mary Daly.

By adopting a well-informed and balanced strategy, retail investors can navigate this challenging phase and position themselves for future gains.