INDIANAPOLIS — After 10 consecutive interest rate hikes, the Federal Reserve finally hit pause Wednesday.
It comes after the most aggressive rate hiking cycle in decades.
The pause, however, is just that. The Fed is expected to raise rates in the future.
Ted Rossman, with Bankrate, said while the group has done a lot to control inflation, they are still not at their target inflation rate of 2%.
"I think the biggest news from today's announcement is that the best guess is that there could be two additional quarter-point hikes later this year," Rossman said.
The Fed is able to delay increases because things are improving.
Rossman said the latest consumer price index and producer price index are examples of this. Still, interest rates remain high, with credit card debt setting a record.
"It's probably going to stick at that high level for a while. So that's where it's so important to get that 0% balance transfer card or take on that side hustle or cut your expenses," Rossman said.
Almost half of cardholders carry debt, according to a Bankrate survey.
Other variable debt, or debt with an interest rate that changes with the economy, includes a home equity line of credit. Those, too, are more expensive.
If you are a saver, now is a good time to shop around high-yield savings accounts.
Some are paying close to 5% interest. The money is liquid, meaning you can access it when you need it.
Certificates of deposit are paying more than 5% interest right now. However, that cash cannot be accessed until the term is up.