5 Ways to Beat the Coming Interest Rate Hikes

In a bid to bust inflation, interest rates will rise. These are the protective measures to take.

Originally Published: 
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Prices on everything from gasoline to groceries are squeezing American households. And, contrary to early assurances, it appears this latest bout of inflation isn’t so temporary after all. That is forcing the hand of the Federal Reserve, which is signaling that it will engage the economy’s brake pedal sooner than later. It recently announced plans to hasten the end of its bond-buying program, designed to stimulate lending during the worst of the pandemic. The Fed simultaneously projected as many as three interest rate hikes this year, with potentially more to follow.

So, what does that mean for borrowers and investors?

While that policy pivot is significant, Brent Weiss, co-founder of the virtual financial planning firm Facet Wealth cautions people not to overreact, either. “What we don’t want to do is chase news headlines,” he says. “You want to follow a personalized plan.”

Dramatic changes to your strategy may not be warranted. But experts say there are several adjustments you can make to head off expected rate hikes and improve your financial position. Here’s what to do.

1. Question your cash.

consumer prices are rising at a 6.8% annualized ratelosing

2. Check out of checking.


3. Reduce your loan balances.

4. Refinance your mortgage.

5. Review your investments

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