So far this year, interest rates have been both our friend and enemy.
When rates go down, we’ll see the opposite.
The postponing of rate cuts poses two questions.
First, what will happen to returns on high-yield savings accounts?
Second, what should we do if we want to finance a car or buy a home this year?
Here’s what I found out.
That could potentially drop the federal funds rate range to 3.50% to 3.75% by December.
Future policy moves will depend on whetherinflationfigures move downward toward the Fed’s 2% target goal.
The central bank will also be monitoring the job market andunemploymentnumbers to avoid a potential recession.
“Don’t borrow money yet,” she said.
“Borrowing costs may stay high for now but could ease later,” said Fingal.
The same is true for car loans.
But when the Fed starts cutting rates, APYs for savings and CDs may decrease, Fingal said.
Banks can change those rates overnight.
