Remember when the price of eggs was more outrageous than EGGcellent? 😵🍳 We sure do. Prices on a lot of things are down since earlier this year, and we're thanking our lucky chickens. 🐔
In related news, at the Fed's September meeting, they announced they won't be raising interest rates. ❌📈 What does that have to do with you and the price of eggs? Keep reading. 👀
Here’s Five Fast Facts on the Fed's recent decision:
- 🔥 Raising Hell - Since March 2022, The Federal Reserve raised interest rates 11 times to try to bring the inflation rate back down.
- 🤓 A Little Context - The current inflation rate is around 3.7%. It was 9.1% at its highest back in the middle of 2022. The Fed's optimal inflation rate is 2%, so there's still some work left to do.
- 👛 Steady Eddie - When the Fed pauses rate hikes, banks usually do, too. This means the interest rate on your savings accounts should hold pretty steady. If you're considering locking in a certificate of deposit (CD), now's a good time to pull the trigger. You'll likely snag a competitive rate.
- 💳 Where Credit is Due - The pause in hikes is also good news for those with HELOCs (home equity lines of credit) and credit card balances. These products often have variable interest rates, which shoot up when the Fed decides to raise rates. For now, you'll get a little breather.
- 🔮 Crystal Ball - Future hikes are always on the table. However, before raising rates again, the Fed's waiting on more data on how the previous hikes impacted the economy.
🔥Bottom line: Even though no hikes are hitting in the short term, don't sleep on the Federal Reserve. It's important to stay tuned to what they're doing since hikes mean a bunch of things for your finances. If you need a refresher on what the Fed is and why you should care, we've got you covered. Mosey on over to this little article for more.
How has inflation impacted your daily life?
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