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ROCHESTER, N.Y. – The Federal Reserve is set to announce its decision on interest rates tomorrow, which could impact borrowing costs. Despite President Donald Trump’s calls for a significant rate cut, 96% of economists polled believe the Fed will not lower rates.

President Trump has criticized Fed Chair Jerome Powell, calling him a “numbskull” and “moron.” However, Powell remains firm in his position.

“If I want him out, he’ll be out real fast, believe me,” Trump said.

Greg McBride, chief financial analyst at Bankrate.com, shared his insights on the situation.

“We’re not going to see an interest rate cut at this point,” McBride said. “There’s really nothing in the economy that’s screaming for a rate cut right now. Unemployment’s low at 4.1 percent. Inflation still higher than desired. Closer to 3% than the goal of 2%.”

The Fed initially raised rates to address inflation, which spiked to 9% in the summer of 2022. Powell also mentioned that tariffs could temporarily increase inflation.

“Tariffs are likely to generate at least a temporary rise in inflation,” Powell said.

Consumers are feeling the uncertainty and some have started to save more.

“My wife already has actually started to penny pinch and not overbuy,” one consumer said.

McBride offered advice for consumers during this time.

“It’s a good time to be a saver, not a good time to be a borrower. Lean into that,” McBride said.

He recommended paying down debt and boosting savings to prepare for any economic changes.

When interest rates are high, you’re likely to see higher rates on high-yield savings accounts. News10 NBC explained the advantages of putting your savings in a high yield account as opposed to a regular savings account.

For more information on high-yield savings accounts, visit the Consumer Alert section of News10NBC’s Deanna Dewberry explained the advantages of saving your money in a high yield savings account in January. Click here for more information and account recommendations.

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