The Fed simultaneously projected as many as three interest rate hikes this year, with potentially more to follow.But experts say there are several adjustments you can make to head off expected rate hikes and improve your financial position.
1. Question your cash.
When consumer prices ↑ 6.8% YoY, your bank balance value ↓ ~ 6.8% YoY, so question your cash in a bank account.
2. Check out of checking.
Federally-insured accounts are a good place to put your emergency funds and money for near-term needs, but not for excess cash.
3. Reduce your loan balances.
Fixed-rate personal loans are a less risky option; it’s better than having a 15% APR that could eventually ↑ to 20%.
4. Refinance your mortgage.
Switching to an FRM while rates are still low, even if you don't have an ARM, may be a good idea.
5. Review your investments
Focus on short-term bonds, so you can potentially sell and buy higher-paying assets if yields rise further.