美国国家公共电台 NPR--What does the Fed's pause in interest rate hikes mean for borrowers and savers?

What does the Fed's pause in interest rate hikes mean for borrowers and savers?

Transcript¹

NPR's A Martinez talks to Chelsea Ransom-Cooper, a certified² financial planner with Zenith Wealth Partners, about the Federal Reserve holding interest rates steady in its battle against inflation.

A MART?NEZ, HOST:

For many people, it's welcome news that the Federal Reserve is hitting the pause button on rate hikes, at least for now. Now, that may mean some relief for people with a mortgage, auto³ loan or credit card balance. But what does it mean for your savings⁴ account? Here to help us sort this out is Chelsea Ransom-Cooper. She's a managing partner and certified financial planner with Zenith Wealth Partners. Chelsea, mortgage rates still relatively⁵ high right now - average rate about 7% according to Bankrate. What impact will the Fed's decision have on mortgage rates going forward?

CHELSEA RANSOM-COOPER: So when we look at mortgage rates, specifically what we're seeing is they are fixed⁶ pretty close to where treasuries⁷ are. But there is still volatility⁸, depending on the loan volume that banks are experiencing right now. Due to the Fed's pause in rate hikes, even though they are talking about potentially raising it two more times before the end of the year, we are really seeing this cause a change in credit cards and variable rate loans. So that's personal loans, and then that also includes those home equity⁹ lines of credit that quite a few people did open over the past few years. So it's important to understand, what are all the types of loans that you have as part of your financial picture and then how are those impacted as well?

MART?NEZ: So should people go out to open houses this weekend and put their real names down, like they're serious to buy a house?

RANSOM-COOPER: (Laughter) You know, it really always comes back to your financial goals and where you are. If you were always planning to purchase a home, it still makes sense for your financial future. You can afford the down payment and you're seeing a home that really makes sense for you and your family - of course, you should always still continue. Personal finance is personal, and making a home decision depends on more than just where interest rates are. It really depends on how much you can afford to cover on that monthly payment, but also on that down payment as well. So with the interest rate pause, it can be an attractive time where people are saying, OK, this is a little bit of a relief, but understanding we're not out of the woods yet since we are expecting to see potentially two more hikes before the end of this year.

MART?NEZ: What about the money that banks pay their customers, things like savings rates in - for savings accounts? Will we see - continue to see increases there?

RANSOM-COOPER: You're asking a great question. So when we think about savings rate, it also depends on where you're banking¹⁰. So if we think about those big brick-and-mortar banks, they typically have very, very low savings rates. And the reason for this is because of the overhead cost that they have to cover. Think about it. You see those big brick-and-mortar banks on every single corner, and that comes with a cost, where those savings rates are not increasing over time. Where if you look at online banks that don't have that overhead cost, they can continue to increase their savings rates over time where they're consistently over 4% right now.

Right now, we're seeing that they're sticking to where they are, but they're a very attractive place to hold your savings if you're looking for something that can yield a little bit more than that 0.01% at that brick-and-mortar. But also, this is your emergency savings. You want to keep it safe. You want to have access and liquidity¹¹ to it. So that's where those online banks that are still getting over 4% can be incredibly attractive.

MART?NEZ: So still a good time to shop those savings accounts to smaller banks.

RANSOM-COOPER: Absolutely, and then also understanding when you will potentially need that money. So having that high-yield savings is great, but also, it can still be attractive to look at shorter duration, CDs or Treasury¹² bills as well - if you know that you have excess cash flow, then what you would need for your traditional 3 to 6 months emergency savings.

MART?NEZ: I was just about to ask about that, yeah, because how do you know, like, how to plan for that? I guess you don't if it's an emergency, right?

RANSOM-COOPER: You don't really know how much your emergency will be, but we say a good rule of thumb is, you know, keeping 3 to 6 months. And especially with the volatility in the market and the layoffs¹³, it's really best to hold closer to six months. And then once you have that, any excess cash that you have that you feel like you may need in, let's say, 2 to 5 years, you're not comfortable putting it in the market, look to some of these shorter duration options where you can lock it in and just get a little bit more yield than you would by investing or leaving that money in a brick-and-mortar bank.

MART?NEZ: So I guess, in short, it's kind of a good time right now if you have money that you don't need to spend on something. If you got money that you can invest, it's a good time to have it.

RANSOM-COOPER: It's an excellent time to have that. The challenge, though, is since a lot of people are leaning on credit cards right now, they don't necessarily have a lot of cash flow. But if you are one of those individuals that do, then it is a great opportunity and a great time to use that high-yield savings.

MART?NEZ: Chelsea Ransom-Cooper is a managing partner and certified financial planner with Zenith Wealth Partners. Chelsea, thanks.

RANSOM-COOPER: Thank you.

1 transcript   

n.抄本，誊本，副本，肄业证书

参考例句：

• A transcript of the tapes was presented as evidence in court.一份录音带的文字本作为证据被呈交法庭。
• They wouldn't let me have a transcript of the interview.他们拒绝给我一份采访的文字整理稿。

2 certified   

a.经证明合格的；具有证明文件的

参考例句：

• Doctors certified him as insane. 医生证明他精神失常。
• The planes were certified airworthy. 飞机被证明适于航行。

3 auto   

n.(=automobile)(口语)汽车

参考例句：

• Don't park your auto here.别把你的汽车停在这儿。
• The auto industry has brought many people to Detroit.汽车工业把许多人吸引到了底特律。

4 savings   

n.存款，储蓄

参考例句：

• I can't afford the vacation,for it would eat up my savings.我度不起假，那样会把我的积蓄用光的。
• By this time he had used up all his savings.到这时，他的存款已全部用完。

5 relatively   

adv.比较...地，相对地

参考例句：

• The rabbit is a relatively recent introduction in Australia.兔子是相对较新引入澳大利亚的物种。
• The operation was relatively painless.手术相对来说不痛。

6 fixed   

adj.固定的，不变的，准备好的；(计算机)固定的

参考例句：

• Have you two fixed on a date for the wedding yet?你们俩选定婚期了吗？
• Once the aim is fixed,we should not change it arbitrarily.目标一旦确定，我们就不应该随意改变。

7 treasuries   

n.（政府的）财政部( treasury的名词复数 )；国库，金库

参考例句：

• Yields on Treasuries, Bunds and gilts can remain at historically low levels. 美国国债、德国国债和英国国债的收益率仍然可以维持在历史低位。 来自互联网
• Treasuries and gold rose in response but the dollar fell sharply. 接着，国债和黄金的价格上涨，而美元价格则猛跌。 来自互联网

8 volatility   

n.挥发性，挥发度，轻快，（性格）反复无常

参考例句：

• That was one reason why volatility was so low last year.这也是去年波动性如此低的原因之一。
• Yet because volatility remained low for so long,disaster myopia prevailed.然而，由于相当长的时间里波动性小，灾难短视就获胜了。

9 equity   

n.公正，公平，（无固定利息的）股票

参考例句：

• They shared the work of the house with equity.他们公平地分担家务。
• To capture his equity,Murphy must either sell or refinance.要获得资产净值，墨菲必须出售或者重新融资。

10 banking   

n.银行业，银行学，金融业

参考例句：

• John is launching his son on a career in banking.约翰打算让儿子在银行界谋一个新职位。
• He possesses an extensive knowledge of banking.他具有广博的银行业务知识。

11 liquidity   

n.流动性，偿债能力，流动资产

参考例句：

• The bank has progressively increased its liquidity.银行逐渐地增加其流动资产。
• The demand for and the supply of credit is closely linked to changes in liquidity.信用的供求和流动资金的变化有密切关系。

12 treasury   

n.宝库；国库，金库；文库

参考例句：

• The Treasury was opposed in principle to the proposals.财政部原则上反对这些提案。
• This book is a treasury of useful information.这本书是有价值的信息宝库。

13 layoffs   

临时解雇( layoff的名词复数 )； 停工，停止活动

参考例句：

• Textile companies announced 2000 fresh layoffs last week. 各纺织公司上周宣布再次裁员两千人。
• Stock prices broke when the firm suddenly announced layoffs. 当公司突然宣布裁员时，股票价格便大跌