Now that the Federal Reserve has announced its intention to begin raising interest rates, many retirees want to know: What do higher interest rates mean for their savings?

For the third time in a row, the Federal Reserve said on Wednesday it would raise the benchmark federal-funds rate – this time, by a 0.75 percentage point so that it hovers between 3% to 3.25%.

Mortgage rates closely follow changes in the federal funds rate. For example, 30-year fixed mortgage rates jumped from 2.68% in late 2020 to over 7% by September 2023 as the Fed raised rates.

Retirees must understand the full impact to make smart money moves in the wake of it. That's especially true as multiple additional cuts are expected, which could bring the benchmark rate down to ...

The decision to raise the federal funds rate to a 4.75-5% target range comes on the heels of the … Continue reading → The post Fed's Latest Rate Hike: What Retirees Need to Know appeared first ...

While many retirees, and other investors sitting in the most Fed-dependent fixed-income investments like money market funds, will enjoy slightly higher yields in a rising rate environment, the ...

The Federal Reserve had an inflation problem to tackle in 2022 and 2023, and it raised interest rates numerous times to tame it. Since the start of 2024, inflation has moderated. And in August ...

The Federal Reserve held its target federal-funds rate at 0 in the first quarter of 2022. By the end of 2023, that target had increased to a range of 5.25% to 5.50%.

While Fed rate decisions influence what you earn on savings, the type of bank and account you choose matters more than actual rate changes, making it important to pick high-yield options that respond ...

The interest rate on the 10-year Treasury note BX: TMUBMUSD10Y fell as low as 3.62% just before the Fed news. Today: 3.79%. The rate on BAA-rated investment grade corporate bonds was 4.85% before ...

If the Federal Reserve is successful in bringing inflation down, it might decide to begin lowering the federal funds rate at some point — and interest rates on consumer products will follow.