HARTFORD, Conn. (WFSB) – The Federal Reserve is continuing to hold off on cutting interest rates despite pressure from President Donald Trump to lower rates.
At the start of 2025, experts were predicting the Federal Reserve to lower interest rates several times before the end of the year. We’re more than halfway to 2026 and that still hasn’t happened. As the federal reserve continues its wait-and-see approach, Michael Chadwick, the owner of Fiscal Wisdom Wealth Management in Canton, is advising caution.
“Our advice is for folks to just go slow, so be cautious. We tell folks looking for purchases: try to defer them. I mean prices of things today are sky high. I mean, real estate prices are off the charts. Automobile prices are off the charts,” said Chadwick.
As interest rates remain high, borrowing money to make any large purchase stays expensive. However, not everyone can wait. Chadwick says if you are looking to buy a home, you should consider borrowing less than what the bank will allow.
“So when it comes to housing, we suggest no more than 25% of your gross income going to housing. Now the banks let you go almost double that number, which is terrifying,” said Chadwick.
If you have to buy a car, Chadwick says to think more about the car’s overall cost than just looking at the monthly payment. Similar to a mortgage, Chadwick advises borrowing less than what the bank approves you for when buying a car.
“I would suggest to most consumers to borrow about half of what the bank will allow you to borrow. That’s a good rule of thumb, half of what they will allow,” said Chadwick.
Chadwick predicts the federal reserve will eventually lower rates this year. He advises creating good savings habits to help set yourself up for success no matter what happens.
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By Cassidy Williams