The Federal Reserve raised its target federal funds rate by a quarter percentage point on September 16, putting the target range at 3.75% to 4%. The move matters for retirees because interest rates can influence cash yields, bond prices, borrowing costs, and the income available from safer parts of a portfolio.
That does not mean every retiree needs to rearrange an investment account. It does mean some old habits deserve another look. A strategy that made sense when rates moved steadily in one direction can become awkward once the rate environment changes.
