Make the most of the Fed's upcoming decision by taking these steps ASAP. Maria Forbes/Getty Images
The Federal Reserve is under pressure to lower interest rates, but that's not going to happen at this week's meeting. With inflation still high and a global trade war raging, experts predict the Fed will pause rates for the fourth time this year at its Federal Open Market Committee meeting on June 17 to 18.
That may not sound exciting, but it has a real effect on your wallet. The central bank's actions impact everything from how much you owe on outstanding debt to what kind of mortgage rate you can get. By making some strategic moves now, you can reap the biggest rewards from the Fed's anticipated rate pause.
Read more: Wednesday's Fed Decision Could Actually Help Boost Your Savings. Here's How
Make these 4 money moves now
Make the most of the Fed's expected decision by doing these things ASAP.
✅ Open a certificate of deposit
CDs are unique deposit accounts that come in terms ranging from a few months to several years. You need to leave your money in the CD for the entire term to avoid early withdrawal penalties. In exchange, the bank or credit union pays you a fixed return for the entire term based on the interest rate in effect when you open the CD.
Some of the best CDs today offer APYs of up to 4.50%. The Fed is expected to cut rates in the fall, so locking in a higher APY now can protect your future earnings if rates drop. Banks tend to follow the Fed's lead when setting CD rates. APYs have been falling even with rates paused, so if you're thinking of opening a CD, now is a great time to do it.
"If you have investment money that aligns with maturity dates on CDs and you want a fixed guaranteed rate, I would recommend investing in that CD now versus waiting until the Fed meeting concludes," said Faron Daugs, CFP, founder and CEO at Harrison Wallace Financial Group.
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