(CNN) – Jerome Powell, Federal Reserve Chairman, says, “We think our policy stance is appropriate at the moment, and we don’t see a strong case for moving it in either direction.”
Interest rates are on hold, but your money goals shouldn’t be, so, what should you do to take advantage of this quiet period? Bankrate.com suggests following these three steps.
Number one: pay down your debt.
Each time the Fed decides to increase borrowing costs, the interest rate paid on your credit card goes up. Experts suggest focusing on paying down your debt before rates get any higher.
They also say it may be a good time to refinance a mortgage since rates have dropped in recent months.
Number two: build up emergency savings.
Now is the perfect time to put away money for emergencies and for retirement. The key is to go with an account that gives you quick access to funds.
Finally: stay the course with your retirement savings.
As the fed figures out how to proceed, markets might get a little choppy, but experts say turbulence is normal. Ignore the hype and just keep saving aggressively.
Experts also say the Fed’s rate pause is the best time for savers. Bankrate says for the first time in a decade, online savings accounts with the highest yields are ahead of inflation.