Two the Point — What do rising interest rates mean to you?

As of now, we expect the Federal Reserve to leave their target rate unchanged at 5.00% at their next meeting, scheduled for Wednesday, June 14.  Given the strength of the U.S. economy and stubbornly high prices, it is possible that the Fed will skip this meeting but favor a hike at their July meeting. This would bring the target rate to 5.25%, signifying a more restrictive monetary policy and continued headwinds for consumers. With this in mind, it is crucial to remain proactive in your financial decisions. As a consumer, it is advisable to carefully evaluate any interest-sensitive purchases, like a home or a vehicle, and consider the potential impact of higher rates on your purchasing power. While higher rates can have some negative impacts, they also help swing the pendulum in favor of savers. This is an excellent opportunity to reassess portfolios and ensure they are optimally aligned with your financial goals.

While we wait on the Fed’s decision to skip the June meeting, our knowledgeable team is prepared to guide you through these evolving market conditions. We understand the importance of staying ahead and will help you navigate financial complexities to ensure your portfolio remains well-positioned for the future.