Retiree Do's and Don'ts in a Rising-Rate Environment
Rising rates aren't an unmitigated evil for your finances and portfolio, but some perspective is in order.
The Federal Reserve raised interest rates Wednesday and indicated that it's likely to increase rates twice more by year end. That brings the benchmark Fed funds rate up to 2%, its highest level since 2008. In a statement, the Fed noted that the economy was growing at a "solid rate," prompting the action--and expected further hikes--to bring interest rates back up to more normal levels.
The latest rate increase was widely anticipated in the market; long-term Treasuries, typically considered the most interest-rate sensitive of bond types, were flat last week.
Christine Benz does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.