Wednesday, October 5

Tag: Federal Reserve

Federal Reserve hikes interest rates for the fourth time this year
Politics

Federal Reserve hikes interest rates for the fourth time this year

The Federal Reserve took an aggressive step on Wednesday to combat soaring inflation with the announcement of another larger than usual, three-quarters of a percentage point interest rate hike. The increase comes as central banking officials face a tough balancing act: bringing down rising prices amid growing concerns of an economic downturn.The latest increase brings the federal funds rate to between 2.25% and 2.50%, which is where it was at its most recent high in summer 2019 before the coronavirus pandemic. This marks the fourth interest rate hike of the year as consumer prices have risen at the fastest pace in more than 40 years. Five months ago, the federal funds rate was near zero percent. At its June meeting, the Federal Open Market Committee raised the federal funds rate by...
Where savers can finally earn a decent return
Business

Where savers can finally earn a decent return

Over the past eight years, anyone with some extra cash to invest has had a problem: Finding a safe place to put it that earned a reasonable rate of interest was nearly impossible. But since 2015, the Federal Reserve has hiked interest rates seven times, with each increase being 25 basis points. Suddenly, earning a real rate of interest -- that is, an interest rate at least equal to inflation -- is a viable option. That is, if you know where to look. Here are three good investments for anyone looking to earn more interest on their savings, and two to avoid.Money market fundsThese can either be FDIC-insured bank products or mutual funds that come without any government guaranty of safety for your principal. Seven-day yields for taxable MMFs now range from 1.8 percent to about 2 perce...