Will the Fed start cutting interest rates soon? 📊 And what does this mean for your investment strategy?
The Fed has held interest rates unchanged since December 2024, even as new tariff policies raised uncertainty. In today’s Money Moves with Darin, Darin breaks down:
💡Why the Fed is taking a cautious approach
💡When do we expect further rate cuts?
💡What this means for investors and borrowers
Watch the video to learn more! 👇
Transcript:
Hey, everyone. Today on Money Moves with Darin, we’re going to talk about US interest rates and where things may be headed from here. As of now, the Federal Reserve has held interest rates at their current level for several months, keeping the federal funds rate well above 4%. The big question for markets and everyday investors is: when will the fed start cutting rates?
Although inflation has come down significantly from its peak, it’s still a bit sticky, especially in areas like services and housing. So the fed is being cautious. They want to see more consistent data and the impacts of tariffs on the economy before making a move. That said, markets are pricing in the possibility of some rate cuts later this year. With some more recent positive economic data over the last couple of weeks, analysts are now estimating 1 to 4 potential rate cuts this year, depending of inflation and the job market evolve. There won’t be a sharp drop, though any cuts will be gradual and measured. So what does this mean for you? For investors, interest rate expectations can drive volatility, especially in sectors like tech and real estate. Staying diversified and focused on your long term plan remains key.
If you’re a borrower, think mortgages, car loans, or credit cards. You may see slightly lower interest rates toward the end of the year, but we are not expecting pre-2022 level interest rates. The bottom line: the fed is walking a tightrope, balancing inflation risks with the potential for economic slowdown. Keep an eye on the data but don’t build your whole strategy around a single rate cut.
If you found this helpful, please share this with your friends and family, and be sure to subscribe to the Evans May Wealth YouTube channel for more market insights and financial strategy. This is Money Moves with Darin. Thanks for watching.
