inflation<\/a>, which has been \u201cstubbornly above the Federal Reserve\u2019s target of 2 percent,\u201d says Christian Weller, a professor of public policy at the University of Massachusetts Boston. Inflation data released Sept. 11 showed that consumer prices were up 3.\ufeff4 percent year over year in August. \ufeff<\/p>\n\u201cAt a glance, rate hikes don\u2019t sound great for consumers,\u201d says Ted Rossman, principal consumer finance analyst at Money Management International, a nonprofit credit counseling agency. \u201cBorrowing is already expensive enough.\u201d<\/p>\n
But higher interest rates aren\u2019t necessarily bad news all around. \u00a0<\/p>\n
\u201cLike everything, there will be winners and losers,\u201d says Laura Quinby, associate director of labor markets and household finance at the Center for Retirement Research at Boston College. \u201cIt really depends on how a household is invested and what sources of income they have in retirement.\u201d<\/p>\n
Here\u2019s what to know about how the Fed\u2019s rate hike will affect retirees.<\/p>\n
What it means for savers<\/p>\n
\u201cOne silver lining is that higher rates are going to benefit savers,\u201d Rossman says. That\u2019s because the Fed raising its benchmark rate often prompts financial institutions to offer higher interest rates on deposit accounts.<\/p>\n","protected":false},"excerpt":{"rendered":"The Federal Reserve has raised its benchmark rate for the first time since July 2023. The central bank\u2019s…\n","protected":false},"author":2,"featured_media":773160,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[84,30443,255010,255014,255012,38913,255013,255011,4176,4174,4175,56,54,55],"class_list":["post-773159","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-fed-interest-rate","tag-fed-rate","tag-fed-rate-decision","tag-fed-rate-hike","tag-federal-reserve-interest-rates","tag-federal-reserve-meeting","tag-federal-reserve-rate","tag-finance","tag-personal-finance","tag-personalfinance","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/773159","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=773159"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/773159\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/773160"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=773159"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=773159"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=773159"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}