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interest rates & the Fed

By Terry Savage on September 25, 2016 | Chicken Money

Terry: when the Fed raises interest rates is that good for my money market investments or bad? I can never keep it strait. thank you

Terry Says

When the Fed does get around to raising interest rates (the rates at which banks borrow from the Fed), that increase should be passed along to other borrowers -- meaning that the yield in your money market fund should go up -- a LITTLE!  There is not likely to be a big difference in your rate from the first Fed rate hike.

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