Folks who have been tuning into the news recently are likely familiar with the concept of changes coming for interest rates. Of course, these changes will be implemented by the Federal Reserve System, but what do they mean for the average household and those who have a stake in financial investments? That is what this blog talks about, courtesy of the experts at HCR Wealth Advisors. Please read thoroughly.
About the Federal Reserve System
In order to understand what interest rate changes will mean, it might be helpful to know what it is the Federal Reserve System, aka the Fed, actually does. What is their real purpose? The Fed is in fact overseen by Congress. They are instrumental in making decisions of the monetary kind. These decisions can have any one or more of three objectives:
- To stabilize monetary prices
- To help employment rise to its maximum potential
- The moderation of interest rates of the long-term nature
Although the tasks overseen by the Fed have expanded over time, its primary purpose is to promote the United States economy and financial system in a healthy manner.
Questions Abound Regarding the Forthcoming Rate Changes
We are not trying to be vague. The answer to this question is up in the air because the Fed has not yet made clear what the changes will be. They have only said that changes will be coming. So, what can be done to prepare for them? One thing is to keep in close contact with your financial advisor. Firms like HCR Wealth Advisors will always be on top of changes in interest rates and other aspects of the industry. They can provide you with all relevant facts and sound advice on what your next moves should be. Your finances will be safe as long as you heed their advice. So, fear not, you and your financial investments will be just fine.
This article is provided for informational purposes only and should not be interpreted as investment advice.