Federal Reserve to cut interest rates: Local financial expert says recession is still a possibility

ROCHESTER, N.Y. (WROC) – Interest rates are expected to come down, according to Federal Reserve Chairman, Jerome Powell. Economists said the cut could happen as early as September.

This was a widely expected move from the Fed. To curb inflation over the past two years, the Fed kept interest rates relatively high to avoid major spending. But now, the job market is waning, and inflation is cooling, so it’s time for an interest rate cut.

This is good news for anyone looking to buy a house or a car, according to Chuck Wade, a financial expert with Brighton Securities. He said he believes the Fed has done an expert job at avoiding a recession so far.

“The challenge was – bring the cost of borrowing up but don’t send us into a recession by the cost of borrowing getting so expensive that people are getting laid off en masse,” he explained. “Although, at the beginning of 2022, everyone and their uncle was predicting recession, we haven’t hit one up until this point. That’s not to say we won’t, we’re not fully out of the woods yet, but it’s as if the airplane hasn’t fully landed, but we’re well into our decent. “

Wade said that an interest rate cut of any kind tends to hurt conservative investors and people with cash-heavy portfolios

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