09/16/2026
As expected, the Fed votes to raise the Federal Funds Rate.
When rates rise, the immediate reaction is usually negative: mortgages, credit cards, and loans become more expensive. That concern is real. High-interest debt becomes more costly, and households with variable-rate payments can feel the impact quickly. That impact is real.
But there are silver linings in the grey clouds ahead.
Higher rates are one of the main tools used to slow inflation. When inflation comes down, consumers can regain purchasing power because the costs of essentials (groceries, fuel, utilities, etc.) stop rising as quickly. At the same time, higher-rate environments can reward people who save, plan, and preserve liquidity.
For everyday Americans, rising rates can create several benefits:
~Savings accounts, money-market accounts, CDs, and Treasury securities may offer more meaningful yields.
~New MYGAs can offer stronger multi-year guaranteed rates, allowing savers to lock in income or accumulation potential.
~Fixed and indexed annuity products may become more competitive as insurers earn higher yields on the fixed-income assets backing their guarantees.
~Investors adding new money to bonds or fixed-income portfolios may be able to earn higher future income than was available in a low-rate environment.
The key is recognizing the difference between *existing holdings* and *new money*. Existing bonds may decline in value when rates rise, but newly purchased bonds, CDs, Treasuries, and fixed annuities can often offer more attractive yields.
Reach out to learn more about how you may be able to capitalize on some of these opportunities as further rate hikes are expected to come.
