Don't wait for the next Fed rate cut. These 3 money moves work anytime
The Federal Reserve is meeting for the first time this year on Jan. 27 and 28, but the odds for a rate cut this month are minimal. After December's job report showed both slower job growth and a decline in the unemployment rate, Barclays and Goldman Sachs pushed their predictions for a cut to the second half of 2026.
Fortunately, you don't need to wait for a change to the federal funds rate to take control of your finances.
"I always try to help my clients build something that works no matter what the Fed does," Don Grant, a CFP at Sabre Wealth, told CNBC Select. "The bottom line is the importance of planning — having a financial life that isn't based on what the Fed might or might not do, but one that's designed to weather the storm."
No matter what happens with interest rates, these financial strategies will always pay off.
3 money moves to make
- Tackle high-interest debt
Regardless of whether the Fed raises or lowers its benchmark rate, paying off high-interest debt is always a smart move. Credit card bills are a big culprit, and interest rates are already so high that a small decrease won't make much difference.
One common strategy for tackling credit card debt is a balance transfer card with an introductory 0% APR period. This will stop the clock and give you months to pay down your bill without accruing additional interest. It's only a wise move if you have a plan to pay the full balance by the end of the intro period — otherwise, you'll be hit with another hefty APR.
The Citi Simplicity® Card lets you pay off your debt interest-free for 21 months, before switching to a 17.49% - 28.24% variable APR.
If you have several high-interest balances or need more time to pay down your debt, you may be better off with a debt consolidation loan. Instead of paying multiple creditors, you'll have one monthly payment, ideally with a fixed lower rate.
Achieve accepts borrowers with bad credit (a FICO Score of 620 or less) and approves loans ranging from $5,000 to $50,000 and terms from two to five years. The digital personal finance company can send funds directly to your creditors and often offers a rate discount if you choose this option. Achieve also has a debt relief program, with agents who will negotiate with creditors to accept less than the full balance.
Achieve® Personal Loans
Annual Percentage Rate (APR): 8.99% to 29.99%
Loan purpose: Debt consolidation, major purchase
Loan amounts: $5,000 to $50,000
Terms: 24 and 60 months
Credit needed: 620 or higher
Origination fee: 1.99% to 6.99%
Early payoff penalty: None
Late fee: See terms
Terms apply.
Pros
Flexible term lengths
Rate discounts available
Works with borrowers with fair credit
Cons
Loans may not be available in all states
The lender charges origination fees
- Maximize your savings
When the Fed lowers its benchmark rate, the return on savings accounts usually declines, as well.
But if you have your money in a high-yield savings account, you'll still be earning an above-average return. The best HYSAs have APYs hovering around 4.2%, which is more than ten times the national average savings rate.
You can easily find a savings account with zero monthly fees and no minimum balance requirement.
Compare savings accounts
- Lock in fixed rates
In an uncertain economy, it's easier to budget if you have predictability in what you owe. So, if you need to borrow or are looking to refinance, opting for a fixed-rate loan over a variable-rate loan means one less unknown.
No matter what happens with interest rates, that loan payment will stay the same.
Even if it means being locked into a slightly higher rate, it'll give you peace of mind. In a year, rates could go back up and you'll be happy you chose a fixed-rate loan that's less vulnerable to fluctuations.
Looking to refinance your car loan? These offers include fixed APRs
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