Chris Longworth Featured In CBS News Article About Interest Rates

Interest rate hikes by the Fed mean higher rates paid by banks to savers.

To combat ongoing inflation, the Federal Reserve raised the federal funds rate 11 times between March 2022 and July 2023. Most recently at the end of January 2024, the Fed held rates steady.

In fact, inflation has been moving downward steadily, falling from a peak of 9.1% last year to just over 3% today.

Although no one has a crystal ball, further rate hikes from the Fed aren’t likely. The central bank’s most recent projections actually call for three potential rate decreases at some point in 2024.

While unlikely, if inflation starts rising again, it could mean higher savings rates are on the horizon. If inflation does spike again, the Federal Reserve would be forced to increase its benchmark interest rate, which would mean a jump in savings rates.

Chris Longworth weighed in:

“Interest rates that we can get on our savings at various banks and savings institutions are directly affected by the Federal Reserve and what it is charging,” says Chris Longworth, host of the radio show “The Money Professor” and owner of The Financial Education Group. “As long as they keep turning up the rates, your savings rates will increase equally and as well.”

Read the original article here: https://www.cbsnews.com/news/ways-high-yield-savings-rates-could-rise-in-2024/