Consumers carrying variable-rate debt, such as credit cards, and those in need of loans may find themselves facing disappointment as the Federal Reserve's benchmark lending rate remains at a 23-year high. This rate directly and indirectly impacts borrowing costs for individuals.
According to the latest summary of economic projections from central bankers, there is only one rate cut expected this year, and it is likely to be modest. This means that interest rates are expected to stay elevated for the foreseeable future, offering little relief to borrowers.
Financial analysts suggest that individuals struggling with high borrowing costs should consider taking advantage of zero-percent credit card balance transfer offers, explore options for lower fixed-rate personal loans and home equity loans, and prioritize paying down debt as quickly as possible.
On the flip side, savers stand to benefit from the Fed's decision, as they have the opportunity to earn more on their savings. With interest rates expected to remain high, savers may find themselves in a favorable position to grow their wealth.
