There’s nothing that better fits the definition of “double-edged sword” than rising interest rates.
If you’re a saver, you love the idea of rising rates. It’s been years since we’ve had bank accounts and other safe havens paying more than a pittance.
But if you’re a borrower, you’re no fan of rising rates, since that means paying more for everything from credit card balances to home mortgages.
Investors also prefer lower rates, since cheap money leads to higher asset prices, as you’ve doubtless seen if you’ve bought houses or stocks over the last few years.
No matter who you are — saver, borrower, investor or any combination thereof — your world is about to change. Because the nation’s central bank has signaled that within a month or so, rates will rise.
Most experts predict the Federal Reserve will hike the federal funds rate by at least 0.25 percentage points at its next meeting in mid-March. And experts are forecasting as many as five additional rate increases before 2022 is over.
Therefore, whatever your situation, now is the time to prepare.
That’s what this week’s “Money!” podcast is about. We’re going to talk about specific moves everyone should be considering in the weeks and months ahead.
Sit back, relax and listen to this week’s “Money!” podcast:
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