As interest rates dropped in 2024 due to Federal Reserve cuts, experts predict the trend will continue in 2025. However, with inflation still high, a strong labor market, and a new administration, the Fed may slow down rate cuts. They are expected to make two cuts in 2025 instead of four as previously projected.
Experts anticipate the Fed will maintain interest rates at their upcoming meeting, with only a few rate cuts throughout the year. This means that while financing expenses may ease slightly for Americans, rates will still remain higher than pre-2022 levels.
Credit card rates are predicted to fall to 19.8%, mortgage rates could reach 6.5%, auto loan rates may drop to 7%, and high-yield savings rates are expected to dip below 4% by the end of 2025.
Overall, the environment for savers remains attractive, despite the gradual decline in interest rates across various financial products.
