The Federal Reserve paused rate hikes in September 2023, offering relief to savers and borrowers
Despite the pause, future rate increases are not ruled out after 11 hikes in 16 months
The Fed controls the federal funds rate, affecting borrowing and saving rates across the financial world
Interest rate management is used to combat inflation, stimulate recovery, or maintain stability
The Fed's concern about elevated inflation levels led to the decision to hold interest rates high
Checking and savings account rates may stay stable due to the pause in rate hikes
High-yield savings accounts offer attractive APYs, some exceeding 5%
Money market accounts see substantial rate increases, making them a viable option
CDs have become more lucrative, with some offering over 5% APY
Borrowing costs for personal loans and mortgages have risen, impacting consumers, and credit card interest rates remain high