The Federal Reserve still sees the economy expanding at a steady clip, meaning an interest rate hike later this year is more than likely.
Still showing little concern over the long-term impact of Hurricanes Harvey and Irma, Fed Chairwoman Janet Yellen continues to hint at raising the key rate another quarter of one percent in December.
“This will be the third time this year that rates have gone up, so it's an annoyance to pay more on credit cards and student loans, but it's not a huge amount,” says Jordan Goodman, 'America's Money Answers Man.' “I think the bigger impacts on consumer confidence are the stock market, the employment situation and real estate prices.”
“Credit cards, student loans, car loans, mortgages, all of that is going to be going up,” he says. “But what you earn on CDs, money market funds and savings accounts is not going to go up.”
But there are ways to make money despite the low rate.
“What are called secured real estate funds, where you can get eight percent yield over one year, it's very, very safe,” says Goodman. “You can take monthly checks or reinvest it back into the fund. You don't just have to sit there in the bank earning nothing while the banks keep raising what you pay.”