Fed Raises Interest Again

On May 3, the Federal Reserve once again raised interest rates by 0.25%, the latest in a series of rate hikes. However, they also hinted that they may be done raising interest rates for the time being. The latest rate hike was the 10th in a row, starting in March of 2022, in an attempt to curb the rampant inflation in the economy after the the pandemic. Inflation has slowed, from a high of 9.1% in June of 2022 to 4.98% in March. While this is still greater than the fed's 2% target, the fed has to balance managing inflation with the possibility of tipping the economy into a recession. What does all this mean for you? It means that rates for savings and CD's may be at a zenith. It may be a good time to consider a CD if you have some extra cash you won't need for some time. Speak with your banker and investment advisor before making any investment decisions.