SAN DIEGO (FOX 5/KUSI) — The long-expected interest rate cut from the Federal Reserve surprised economists with the aggressive drop of 50 basis points Wednesday, or more easily understood as a half point.

“How are we doing in the United States in terms of the economy? I think we are doing great,” said Stephen Conroy, an economics professor at the University of San Diego.

Conroy explained that with the rate cut, the signal is clear that the government has put their foot squarely on the economic gas pedal for cars housing and everything in between.

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“Maybe Joe Sixpack was thinking about buying a truck and now interest rates have come down far enough that he buys a truck,” said Conroy.

Jerome Powell, the chairman of the Federal Reserve, has been listening to critics second guess his decisions to hold off on interest rate cuts, but as of Wednesday economists are breathing easier with his moves.

“It looks like they could be achieving the elusive soft landing,” said Alan Gin, a professor of economics from the University of San Diego.

The soft landing, meaning the Fed was able stabilize consumer prices without pushing the economy into a recession.

Professor Gins said the current economy is in a “Goldilocks type of situation,” meaning it’s “not too hot, not too cold.”

Housing will be the sector most affected by these interest rate drops. With refinancing spiking and more homes on the market, the question is: will new housing supply on the market help ease prices or will inexpensive loans push prices even higher?

“Even if prices were to rise somewhat as a result of this, the fact that the interest rates are coming down means that the total cost all in looking at your monthly payment might actually come down,” said Professor Conroy.

Rates are expected to be cut as many as four more times in the coming months.

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