I won’t bury the lead… DON’T BORROW MONEY UNLESS YOU HAVE TO!
Here’s why…
Yesterday, Uncle Jerome kept rates where they are and gave his first dove-ish signal saying that we’ve probably seen the peak of their rate increases.
(Dove-ish is Fed-speak for leaning more accommodative (accelerator) than restrictive (brakes).)
The Fed’s current expectation is 2-3 rate cuts this year and more next year and the year after.
The current Fed Funds Rate is 5.5%.
The Fed Governors all create their own projections for future rates and the current median projections are
2024: 4.6%
2025: 3.9%
2026: 3.1%
What does that mean for you?
DON’T BORROW MONEY UNLESS YOU HAVE TO!
Drive that care until the wheels fall off…
Delay your dream kitchen renovations…
Rent just a little while longer…
