Fed Expected to Raise Interest Rates for First Time Since 2023

Full analysis

The Federal Reserve is widely expected to raise its benchmark federal funds rate by a quarter percentage point at its September 15–16 meeting, according to Kiplinger's David Payne. The driver is persistent inflation: energy prices remain elevated and non-energy inflation has not improved, while the August jobs report showed a strong employment gain, giving the Fed little cover to hold. If the Fed raises in September, Kiplinger's analysis suggests it would likely hold in October (to avoid action just before Election Day) and then raise again in December. A rate hike matters to older savers and retirees because it can push up yields on savings accounts, CDs, and money-market funds — but also raises borrowing costs and can weigh on bond prices in existing portfolios.