Have you noticed that the costs of groceries and other expenses aren’t rising as fast as they were this time last year or the year before? Fortunately, inflation has cooled, which is a great thing for our budgets.

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

This move could have an impact on your finances, and it’s worth taking these key actions before it happens.

1. Open a CD

Although the Fed does not set rates on certificates of deposit (CDs), when the benchmark interest rate falls, banks start paying less. In fact, you may have already noticed that most CDs are no longer paying the 5% they were at the beginning of the year. That drop came on the back of the Fed’s rate cut in September.

If you want to lock in a CD before rates drop again, act fast. The good news is that plenty of banks still offer great rates on CDs. Click here for a list of the best CD prices available now.

2. Check your credit score

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

The good news is that a rate cut should also lower the overall cost of the loan. 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 boost your credit score so you can take advantage of lower borrowing costs for things like auto or personal loans.

Of course, improving your credit score is something that 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 when they’re due and work on reducing your credit card balances, both of which could lead to a higher credit score over time.

It’s also worth checking your credit report for errors. Correcting a mistake that is working against you could see your credit score rise quite quickly, which is a good thing to have at a time when rates are falling.

3. Line up a real estate agent

Mortgage rates aren’t guaranteed to drop as soon as the Fed makes its next rate cut. But there’s a good chance they will drop in the coming months, which could make property more affordable.

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

Of course, there is a chance that the Fed won’t end up cutting interest rates at its meeting later this week. But if that is the case, then he will most likely move forward with another rate cut during his December meeting.

The Fed is expected to make more rate cuts next year to reverse the hikes it implemented in 2022 and 2023. So all of these moves make sense regardless of what happens on November 6-7.