SIOUX CITY, Iowa (KCAU) — An Iowa economist says the country is moving in a good direction after the Federal Reserve cut rates by a half-point Wednesday.

The cut is the first interest rate reduction in four years, and while consumers may not immediately notice a lower bill on their credit cards, mortgage rates and car loans are starting to fall.

University of Iowa economics professor Anne Villamil said this is a sign that the Fed is optimistic about the future.

“It’s nice as an economist to say this was good news, and the economy is moving forward,” Villamil said. “Chairman Powell talked about recalibrating policy down to the neutral rate… really what he was trying to say is we want to get back to normal.”

Villamil said the Federal Reserve is predicting to cut rates twice more by the end of the year, a quarter-point each time. That would bring interest rates down a whole point.