Three things to do with your money after the Fed’s rate pause

Three things to know about the Fed rate pause

• Interest rates are the highest they’ve been in 15 years on high-yield savings accounts and CDs. Open one today to seize on the best rates.
• Credit card APRs are at record highs, so consider moving your debt to a balance transfer card.
• Mortgage rates are the highest they’ve been in decades. Look for pockets of opportunity to lock in a better rate.

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No Fed rate hike: What the pause means for you 

For the second time in 18 months, the Federal Reserve chose to forgo a rate hike as it waits to see the longer-term impact of its efforts to tame inflation.

The federal funds rate will hold at 5.25%-5.50%, its highest level in 22 years — but the Fed didn’t rule out additional rate hikes before year’s end. 

“In determining the extent of additional policy firming that may be appropriate to return inflation to 2 percent over time, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments,” the Federal Open Market Committee (FOMC) wrote in a statement accompanying the announcement. 

In other words, the FOMC wants to wait and see. 

Inflation has eased significantly over the past 18 months, but remains well above the Fed’s 2% target. Increases to the federal funds rate — what it costs banks to borrow from one another — make life more expensive for consumers, too. And the Fed hopes that financial pressure will cool the economy enough to bring inflation down. 

Pocketbooks are feeling the pinch from every side, but there are ways right now to improve your financial well-being. These three tips will help you grow your savings while being conscientious...