Fed decision buys more time for savers to profit from high interest rates

New York (CNN) — As was widely expected, the Federal Reserve left its benchmark interest rate unchanged for its seventh meeting in a row on Wednesday. People carrying variable-rate debt like credit cards and those seeking a loan won’t be happy given that the Fed’s rate, which directly and indirectly affects consumers’ borrowing costs, remains at a 23-year high. Those rates will likely stay high for a while. At this point, only one cut is seen as likely before the end of the year,& according to US central bankers’& latest summary of economic projections. But whenever the cuts start, they may be small. “Absent a complete about-face from the economy, interest rates aren’t likely to come down soon enough, or fast enough, to provide meaningful relief to borrowers. Utilize zero-percent credit card balance transfer offers, shop around for lower fixed-rate personal loans and home equity loans, and channel as much income as possible toward paying down this debt as quickly as possible,” said Greg McBride, Bankrate.com’s chief financial analyst. But the Fed’s decision leaves savers, once again, in the catbird seat when it comes to making money on their money. “Savers are enjoying the best returns on savings accounts and...