This week Federal Reserve officials could lay out a plan for interest rate cuts, possibly as early as September.
After aggressive rate hikes starting in March 2022, the Federal Reserve has been attempting to pull off a delicate balancing act.
"They don't want unemployment to go up much more. They also want to get inflation down a little bit more," said Greg McBride, the chief financial analyst with Bankrate.
McBride and other analysts largely agree that a July interest rate cut is unlikely. Instead, the central bank is expected to leave its benchmark interest rate steady in a range between 5.25% and 5.5%.
"This meeting is where the Federal Reserve is going to tee things up for a rate cut as soon as September," he said, "provided that the inflation data in particular continues to cooperate."
For now, that could leave Americans with a two-month gap to take advantage of higher rates by boosting their savings as much as possible.
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"Consumers can put money into high-interest savings accounts and lock in high interest rates on CDs," said Leslie Tayne, founder of Tayne Law Group. "If you don't need cashflow right away, you can put your money in a CD and let it sit there and accumulate a really nice return on investment."
Should the Fed cut rates this fall, Tayne said consumers will have to decide whether to jump on those lower rates, if mortgage rates drop for example, or hold off for more cuts.
"If you're going to need a car or anything else that you're going to finance in the future, it is a good idea as a consumer to keep an eye on what the Fed decides to do," Tayne said. "One rate decrease is great, but in the new year, there may also be additional rate decreases."
While rate cuts may offer borrowers some hope, McBride predicts interest rates, especially for credit cards and mortgages, will remain elevated.
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"Interest rates took the elevator going up, but they're going to take the stairs coming down," he said.
Experts say there's no sense holding out for better returns on CDs or high-yield savings accounts. But keep an eye on what the Fed decides to do if taking on new debt.
The Fed is slated to release its policy statement Wednesday at 2 p.m. ET. Fed Chair Jerome Powell will answer questions following the release.
