Tag: high inflation

The Fed is terrified Americans could get used to high inflation. It may already be happening | CNN Business

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A worrisome sign for the Federal Reserve is starting to emerge.

The Fed keeps a close eye on several risks that could make its job of taming inflation even more difficult, such as red-hot consumer demand keeping some upward pressure on prices and the possible effects of geopolitical tensions in the Middle East on oil prices.

But the US central bank also pays close attention to whether Americans still have faith inflation will eventually return to normal. That faith seems to be eroding.

The University of Michigan’s latest consumer survey released Friday showed that Americans’ long-run inflation expectations rose to 3.2% this month, the highest level since 2011.

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How to take advantage of rising interest rates | CNN

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With the Federal Reserve’s interest rate hike on Wednesday — its fourth since March — consumers again face the question of where to park their savings for the best return and how to minimize their borrowing costs.

In its bid to beat back high inflation, the US central bank hiked its overnight lending rate another 75 basis points to a range of 2.25% to 2.50%. And more rate hikes are anticipated later this year.

“With inflation running north of 9%, we’re not at the finish line and there will be more interest rate increases to come in the months ahead,” said Greg McBride, chief financial analyst at Bankrate.com.

Here are a few ways to situate your money so that you can benefit from rising rates, and protect yourself from their downside.

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