Midterm results may add uncertainty to the Fed’ next rate decision — here are 5 money moves to consider before December Vawn Himmelsbach Sun, November 8, 2026 at 8:50 AM EST 9 min read GC=F -0.94% Alexanderstock23/ Shutterstock Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below.
You've probably heard the news: Democrats have won control over both chambers of Congress.
But now that the dust has (mostly) settled from the midterms, there's new uncertainty — about the Federal Reserve's next move.
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At its last meeting on Oct. 28, the Federal Open Market Committee (FOMC) decided to hold the target range for federal funds at 3.75% to 4.00% by a 10-2 vote. In the Fed's press release (1), they pointed to factors like "resilient" domestic spending and expanding economic activity as reasons for the decision.
Currently, the odds seem to favor an upcoming increase in rates. As of Nov. 6, projections show about a 76.8% chance of a 25-point (0.25%) hike (2) in December, when the next meeting takes place. Note that the CME FedWatch tool that generates this projection uses 30-Day Fed funds futures prices and fluctuates significantly.
But the question is, should you bet on a hike happening?
Money managers had mixed opinions on the Fed's decision. Rick Rieder, CIO of Global Fixed Income at BlackRock, agreed with holding steady, posting (3) on Twitter that "patience is the right approach."
But DoubleLine CEO Jeffrey Gundlach told (4) CNBC he believes the Fed should be raising interest rates and that "absent a crack in the oil price," they'd have to raise rates in December.
In support of his point, oil prices have been a major contributor to U.S. inflation (5), driven primarily by the war in Iran — with recent volatility in oil prices stemming from traders' perceptions of where the war is headed.
It could almost be viewed as a chain reaction: The Trump administration's path in Iran influences oil prices, which then drives inflation, which then dictates the Fed's moves on interest rates.
However, some analysts believe that November's blue tsunami of midterm results could spur Trump to seek an agreement (6), while others say he will launch fresh strikes on Iran.
In response to the elections, oil prices fell in the days leading up to the midterms, then gained more downward momentum following criticism of the war (7) by Vice President JD Vance after the election.
But oil prices could start rising abruptly if there's a fresh wave of attacks — or if traders believe an attack is imminent.
All of this serves to heighten uncertainty around the Fed's next move. So it may be a fool's errand to try to predict the direction of policy interest rates — and even more so to make financial decisions that require a certain rate direction to be successful.
Besides, you don't need to predict the Fed's next move to make some smart financial decisions. Here are five money moves you can make now in this uncertain environment.
Regardless of the Fed's next move on rates — up or down — the U.S. will remain in an elevated rate environment. That means it may be a good time to consider putting some of your uninvested cash to work. Emergency funds that have a high interest rate can be particularly appealing.
As its name implies, an emergency fund is for emergencies — anything from the loss of a job to sudden health issues — that allows you to cover unwanted expenses without going into debt or tapping your investments.
If it's sitting in a traditional checking or savings account, though, you may want to compare the interest rate it's earning to rates available in high-yield savings accounts, money market deposit accounts, certificates of deposit or short-term Treasuries.
For example, a high-yield account like a Wealthfront Cash Account can be a great place to grow your uninvested cash, offering both competitive interest rates and easy access to your money when you need it.
A Wealthfront Cash Account currently offers a base rate APY of 3.55% through program banks. With a new client boost and direct deposit incentive, referred clients can earn up to a 4.55% APY.
That's 10 times the national deposit savings rate, according to the FDIC's October report (8).
With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, your funds remain accessible at all times. Plus, you get access to up to $8M FDIC Insurance eligibility through program banks.
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With current high rates — along with the chance of a rate increase and a low probability of an actual rate cut at the next meeting — now might be the time to review variable-rate debt such as a home equity line of credit (HELOC).
A HELOC lets you borrow money using the equity in your home as collateral. They generally have variable interest rates tied to short-term benchmarks like the prime rate, so they're sensitive to the Fed rate.
If you already have a HELOC, you might want to review your payments and how they could change if interest rates rise. After all, you don't have to wait for lower rates to save you — you could even consider accelerating repayment if you can.
Credit card rates also tend to move with the prime rate (9). In a high-rate environment — with the risk of higher rates — it's a good idea to do what you can to pay down your credit cards.
You can start with the one with the highest rate (avalanche method) or focus on paying down the one with the smallest balance first (snowball method) — whichever will keep you motivated.
Now could even be the time to create a budget that helps you live within your means so you aren't just running up more debt.
Tools like Monarch Money can help you do this. Monarch Money's expense tracking system puts all your money under one roof by connecting all your accounts in one place, giving you a clear view of where you might be overspending.
All you have to do is link your credit card accounts, then you can monitor your payment progress in real time and set specific goals to get out of credit card debt faster.
And the best part? Monarch Money offers a seven-day free trial so you can see if it's right for you. If you like what you see, you can get 50% off your first year with the code WISE50.
If you're looking to buy a home, you might be tempted to rush into it to avoid another rate hike or, conversely, you might want to wait for the Fed to lower rates.
However, the Fed doesn't directly set (10) 15- and 30-year fixed mortgage rates. Rather, these generally track long-term Treasury yields, which have remained generally high apart from a post-midterm dip (11).
If you're hunting for a new family home, you might want to wait to lock in a mortgage that works for your budget rather than trying to predict the market. If rates do fall in the future, you could always consider refinancing your mortgage.
Auto loans, in contrast to mortgages, tend to be more sensitive to Fed rates (12), but you may have more luck timing your purchase around auto dealers' sales cycles than around the Fed. For example, you may be able to snag a year-end financing deal.
Additionally, in a high-rate environment, it may be prudent to arrange financing before you start shopping for a car.
A high rate on your financing can materially raise the total cost of the vehicle, so knowing what you'll need to pay may help you choose a vehicle that you can afford, given your financing options. It may help you decide whether it makes sense to put down a larger down payment.
If you're looking to refinance your car, LendingTree lets you shop around and compare rates on auto loans from reputable lenders near you.
You can find rates as low as 5% APR in three simple steps. Just fill out their form with some basic information about yourself and the vehicle you'd like to refinance, and LendingTree will match you with up to five lenders that best fit your financial profile. From there, you can choose which offer you'd like to proceed with.
The best part? This process is free and only takes a few minutes.
Just as timing the market rarely pays off, betting on the Fed can be risky. But for some rate-dependent financial decisions, you can still make smart money decisions that won't depend on the Fed's next move.
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U.S. Federal Reserve (1); CME Group (2); X (3); CNBC (4); Bureau of Labor Statistics (5); Politico (6), (7); Federal Deposit Insurance Corporation (8); Federal Reserve Bank of Boston (9); Federal Reserve Bank of St. Louis (10); The Wall Street Journal (11); The Washington Post (12)
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