The Great "Recalibration" Has Begun. What It Means for You.

No images? Click here   By Elizabeth O'Brien | September 22, 2024 The great recalibration has begun. This past week the Federal Reserve cut its benchmark federal-funds rate for the first time in four years. Policymakers opted for an aggressive, half-point cut in a move that will have repercussions for your finances. Fed chair Jerome Powell described the decision as a “recalibration,” and investors seemed to dig it, sending stocks surging. The federal-funds rate influences the prime rate, which in turn helps banks determine what interest to offer their customers. Expect to see the interest rates come down on your high-yield savings account and CDs, if they haven’t already. On the upside, borrowing costs will come down on credit card debt and auto loans, although not dramatically. Mortgage rates have already begun to tick down, which might spur the housing market. The move signals a shift in the Fed’s focus, from raising rates to combat inflation toward lowering rates to support the labor market and the broad economy. Retirees in particular might feel the pinch of lower rates on safe investments and accounts. The Fed's New Word Is 'Recalibrate.' Why Investors Love It.       Retirees Face Lower Yields Now That the Fed Has Cut. How to Fine Tune Your Portfolio. It's a good time to take stock. Savings and CD Rates Are Already Dropping. Where to Find the Best Yields. Smaller banks tend to have the highest rates. Attention Young Investors. Advisors Want Your Business They're offering flexible fee schedules to lure Gen Z. The Rich Have Worries. Four Moves They Can Make Now. Attorneys are already getting booked up ahead of the expiration late next year of the Tax Cuts and Jobs Act. What You Get When You Turn 65 A Barron's writer breaks down the discounts.   More Barron's Retirement Coverage       Historic Numbers of Americans Live Alone As They Age (Kaiser Health News) Inside Apple's Airpods-As-Hearing Aids Play (MarketWatch)   *** Stay on top of the tech trade with a daily rundown of top-performing tech stocks and the big names making news. Sign up for the Tech Report newsletter by Investor's Business Daily here.      Social Security   Medicare   Required Minimum Distribution calculator   Getting Ready to Retire? Here's a Planning Guide for the 5 Years Before Your Last Day.   Finra's Guide to Social Isolation and the Risk of Investment Fraud   The SEC's Guide to Identity Theft, Data Breaches, and Your Investment Accounts           This mailing was sent to aymentanaze.news@blogger.com,  because you signed up to be a Barron's newsletter subscriber. Manage Email Preferences | Privacy Notice | Cookie Notice | Contact Us Barron's | 1211 Avenue of the Americas | New York, NY 10036 ©2024 Dow Jones & Company, Inc. All Rights Reserved .         Unsubscribe