While the Federal Reserve held interest rates steady in July, speculation about potential rate cuts before year-end continues to swirl. In light of this economic uncertainty, Fortune Recommends talked with Dan Tolomay, chief investment officer at Trust Company of the South, on how consumers can best manage their finances in the current high-rate environment.
“A higher federal funds rate means banks’ borrowing costs are greater,” Tolomay explains. “This gets passed on to consumers in the form of higher interest rates on things like auto loans and mortgages.”
With rates between 5.25% and 5.5%—a 21-year high—consumers face both challenges and opportunities. Tolomay’s expertise sheds light on smart money moves, including tackling high-interest debt, leveraging high-yield savings accounts, and maintaining a steady investment strategy despite market fluctuations.
As economic conditions fluctuate, Trust Company of the South remains committed to supporting clients through these uncertain times, providing insights to help them make well-informed decisions to potentially strengthen their long-term financial outlook.
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