With stimulus dried up and the Fed hiking rates for the 10th time since March 2022, how long can the consumer stay strong? Some may suggest cracks are beginning to appear.Â â?Consumer debt hit new highs in the first quarter of 2023, surpassing $17 trillion.Â The federal funds rate is now at the highest level since 2007. With inflation still sitting above 5% and rummblings of potentially another rate hike, what could it mean for the consumer?
It's not all bad news. As interest rates remain high, you (the consumer) can benefit from boosted earnings on your savings. Our team has been touting the advantages of pulling dollars out of your low yielding bank accounts and put it into short-term Treasury obligations yielding north of 5%.
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