Buffalo, N.Y. (WBEN) - Rising prices and slowing job growth are expected to give the Fed enough reason to resume their interest rate cuts when they meet this week.
The Fed had paused their rate cuts after cutting a full percentage point last year. After the election and vast change in economic policy, they decided to wait and see what the next move should be.
The only question seems to be if the Fed would cut a quarter or a half a percentage point.
"It's kind of a good news, bad news," said "Jill on Money" analyst Jill Schlesinger with WBEN. "It's good news if you are paying interest right now, if you are a borrower... if you're a saver, you're going to earn a little bit less interest on those savings."
For people who have become used to nice returns in high yield savings accounts over the past few years, moving that money somewhere with a higher return might now be something to look into. Schlesinger says looking into a CD with a locked in rate might be a better move for savers.
"Maybe what I would do right now is if I could lock in a CD rate, because I know interest rates are going down over the next year or two, maybe I could get a two-year CD that is more like 4% when my money market account is likely to go faster down to 3%," she said.
The Fed's rate decision is set to be made on Wednesday.