What to Do With Money When Fed Hikes Interest Rates

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Here’s what: Now is a good time save and invest strategically

The Federal Reserve hiked interest rates once again this week, by 0.75 percentage points. The goal is to cool the economy and bring high inflation under control, but repeated hikes will “bring some pain” to families and businesses in the short term, as Fed Chair Jerome Powell put it.

If you’ve been shopping for a home or looking to borrow money for your business recently, you’re undoubtedly keenly aware of that “pain.” Just this month, mortgage rates leapt up to 6% for the first time since 2008, an astronomical rise from their early pandemic-era lows in the 2% range.

And while inflation is likely eating away at every extra dollar in your budget, there are some smart things you can do with your money right now to help it grow while interest rates remain high.

Switch to a high-yield savings account

If you have savings sitting in a typical bank savings account (currently earning an average of 0.17%) run, don’t walk, to open a

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