Recently, the Federal Reserve raised the benchmark borrowing rate to 5-5.25%, which was the 10th increase in over a year. This rise in rates is the last rate increase most members of the Federal Reserve anticipate. In fact, the majority of Reserve members anticipate that interest rates should lower starting in 2024 eventually bringing the rates down to a long-term average of just 2.5% or half of what it is today!
What does this mean for investors? Well, if you have excess cash sitting idle in a bank account, now might be the time to consider putting that ‘lazy’ money to work. With rates expected to come down, you’ll want to consider what funds are truly needed for short-term needs and what funds are excess that can take advantage of higher rates before they drop. It’s not too late!
So, if you’re interested in discussing your options and finding safe ways to invest your idle cash, let’s chat! You can simply give us a call, and we’d be happy to discuss the goals and use of your excess cash reserves.
As always, thanks for your continued trust and support, and we look forward to catching up with you soon.