The Federal Reserve held interest rates steady for a fifth consecutive meeting, but borrowers may not be in the clear yet.
Financial advisers say another rate hike could still happen before the end of 2026, making now a good time to review debt, savings and investment options.
Jared Elson, president and CEO of Authentikos Advisory, said the Federal Reserve could raise interest rates by a quarter point as soon as September.
Higher interest rates can make borrowing more expensive, affecting credit cards, loans and other variable-rate debt.
Elson said people should start by looking at what they owe and whether any of that debt is tied to interest rates.
If paying off rate-sensitive debt is not possible, Elson said consumers may want to explore ways to lower borrowing costs, including promotional annual percentage rate (APR) offers.
“Just take stock of your situation and see where you need to decrease costs, where you might have opportunities for investment to take advantage of the rate environment that we’re in today,” he shared.
Elson called the current environment a balancing act. While higher rates can hurt borrowers, they can also benefit savers.
Elson said there has not been a better time in the past 20 years to consider safer options such as CDs and high-yield savings accounts.
Despite higher rates, Elson said he believes the economy has remained resilient.
The Federal Reserve’s next decisions will be closely watched as consumers and investors look for signs of whether rates will stay put or tick higher later this year.