Ways to spend — and save — as interest rates stay high and tariffs mount
Consumers should brace for borrowing costs to stay elevated, prices to rise and stock markets to remain on edge for at least a little longer, analysts say.
Consumers should brace for borrowing costs to stay elevated, prices to rise and stock markets to remain on edge for at least a little longer, analysts say. That’s because the Federal Reserve opted Wednesday to hold interest rates steady, flagging rising uncertainty from White House trade policies.
But shoring up your finances requires playing defense as well as offense — keeping tabs on the money coming out of your accounts while maximizing the returns on the savings you’re piling up. And even an economy stalked by the prospects of stagflation offers some opportunities to do both.
If there are any big-ticket purchases you’ve been planning to make this year, the time is probably now. Major appliances, cars and other items with components or assembly in Canada or Mexico or those containing steel and aluminum are expected to get pricier as President Donald Trump’s tariffs on those countries and materials take hold.
While the auto market has begun to stabilize early this year, industry analysts expect disruptions.
“There is no way you’re going to see a better discount if you wait three months,” Ivan Drury, director of insights at Edmunds, told NBC News this week. A recent estimate forecasts vehicle prices to increase by anywhere from $4,000 to $12,500 because of Trump’s trade war with the United States’ closest trading partners.
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