How your money might be affected if the Fed cuts interest rates

A rate cut could hurt savers with high-yield accountsThe federal funds rate is used as the benchmark for many consumer interest rates. Variable credit card interest rates are tied to the prime rate, for example, which is closely related to the federal funds rate, Hamrick says. The Fed does not directly set mortgage rates, but cutting the benchmark rate could still impact your mortgage. “But a drop in the fed funds rate will contribute to mortgage rates remaining low into the future.” If you hold


A rate cut could hurt savers with high-yield accountsThe federal funds rate is used as the benchmark for many consumer interest rates. Variable credit card interest rates are tied to the prime rate, for example, which is closely related to the federal funds rate, Hamrick says. The Fed does not directly set mortgage rates, but cutting the benchmark rate could still impact your mortgage. “But a drop in the fed funds rate will contribute to mortgage rates remaining low into the future.” If you hold
How your money might be affected if the Fed cuts interest rates Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-10  Authors: alicia adamczyk
Keywords: news, cnbc, companies, federal, funds, hamrick, affected, economy, money, credit, rates, cut, interest, rate, mortgage, cuts, fed


How your money might be affected if the Fed cuts interest rates

Jerome Powell, chairman of the U.S. Federal Reserve, said that downside risks to the economy remain with trade wars softening business investment and weak inflation.

Federal Reserve Chairman Jerome Powell said Wednesday that the U.S.’s uncertain economic outlook could lead the central bank to cut its benchmark short-term interest rate later this month. Experts say the cut would likely be a modest quarter of a percentage point. The rate cut would be a result of a confluence of factors, including uncertainty over a U.S-China trade war and a slowing economy. How would a rate cut — the first since 2008 — impact the average consumer? While it’s hard to predict, generally, a rate cut is “good for borrowers, bad for savers, and mixed for investors,” Sallie Krawcheck, co-founder and CEO of Ellevest and former Wall Street executive, tells CNBC Make It.

A rate cut could hurt savers with high-yield accounts

The federal funds rate is used as the benchmark for many consumer interest rates. Already, some banks — including Ally and Marcus by Goldman Sachs — have cut yields on some of their retail products, including savings accounts, in anticipation of the central bank’s actions. Experts say savers can also expect CD rates to fall ahead of the Fed’s decision. The exact impact is still unknown, says Mark Hamrick, Bankrate.com senior economic analyst. Although savings account APYs might decrease, he says, many traditional banks never increased them significantly anyway; the national average rate is still 0.10%.

A rate cut helps borrowers with credit card debt

An interest rate cut is bad news for savers, “but it is something of an unexpected gift for borrowers and investors,” says Hamrick. Variable credit card interest rates are tied to the prime rate, for example, which is closely related to the federal funds rate, Hamrick says. So, with the federal funds rate dropping, a card holder could see a drop in their APR within a billing cycle or two, which means smaller monthly payments. Credit card interest rates are currently at a record high, so any breathing room would be a boon to those carrying credit card debt. Still, a slight cut won’t save borrowers much when they are facing double-digit interest rates; it’s important to make a plan to pay off any balance as soon as possible.

Mortgages are more complicated

Mortgage rates are a bit trickier, says Hamrick. The Fed does not directly set mortgage rates, but cutting the benchmark rate could still impact your mortgage. Investors typically rush to the relative safety of bonds when the economy falters. As a result, recent lower bond yields have led to substantially lower mortgage rates since the end of 2018. Cutting rates could potentially reverse that, Hamrick says, as it signals an improving economy. On another front, Skylar Olsen, Zillow’s director of economic research, tells CNBC Make It that other economic factors have more influence on mortgage rates. “The typical 30-year mortgage rate is responding more to uncertainties on a global stage due to trade war concerns and early stage softening in the economy in general than in the fed funds rate,” says Olsen. “But a drop in the fed funds rate will contribute to mortgage rates remaining low into the future.”

Some other loans might be impacted

Consumers with home equity lines of credit would also benefit from lower interest rates, while auto loans should not be materially affected by the change. Federal student loan rates are set by the Department of Education each year, based on the 10-year Treasury note, and are expected to fall next year. Private loan rates might be variable, and therefore could be indirectly influenced by the Fed’s decision. If you hold private loans, it could be worth exploring refinancing options if the Fed drops interest rates.

Overall the effects are mixed


Company: cnbc, Activity: cnbc, Date: 2019-07-10  Authors: alicia adamczyk
Keywords: news, cnbc, companies, federal, funds, hamrick, affected, economy, money, credit, rates, cut, interest, rate, mortgage, cuts, fed


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Next government shutdown: How to build a cash cushion when your income is cut off

There’s one thing the record 35-day government shutdown made clear: Americans aren’t saving for a rainy day. “The partial government shutdown serves as a wake-up call that emergency savings must be made a more serious priority,” said Mark Hamrick, senior economic analyst at Bankrate.com. Over three-quarters of all full-time workers are living paycheck to paycheck, according to a report from jobs site CareerBuilder. Just 40 percent of Americans are able to cover an unexpected $1,000 expense with


There’s one thing the record 35-day government shutdown made clear: Americans aren’t saving for a rainy day. “The partial government shutdown serves as a wake-up call that emergency savings must be made a more serious priority,” said Mark Hamrick, senior economic analyst at Bankrate.com. Over three-quarters of all full-time workers are living paycheck to paycheck, according to a report from jobs site CareerBuilder. Just 40 percent of Americans are able to cover an unexpected $1,000 expense with
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Company: cnbc, Activity: cnbc, Date: 2019-02-08  Authors: sharon epperson, jessica dickler, dan brownsword, getty images, -greg mcbride, bankrates chief financial analyst
Keywords: news, cnbc, companies, unexpected, cash, cushion, paycheck, according, wakeup, shutdown, income, cut, build, savings, americans, hamrick, workers, website


Next government shutdown: How to build a cash cushion when your income is cut off

There’s one thing the record 35-day government shutdown made clear: Americans aren’t saving for a rainy day.

“The partial government shutdown serves as a wake-up call that emergency savings must be made a more serious priority,” said Mark Hamrick, senior economic analyst at Bankrate.com.

Over three-quarters of all full-time workers are living paycheck to paycheck, according to a report from jobs site CareerBuilder. Just 40 percent of Americans are able to cover an unexpected $1,000 expense with their savings, according to a separate survey from personal finance website Bankrate.

“Too many are failing to expect the unexpected — that either significant expenses, or an interruption in income, will occur at some point,” Hamrick said.


Company: cnbc, Activity: cnbc, Date: 2019-02-08  Authors: sharon epperson, jessica dickler, dan brownsword, getty images, -greg mcbride, bankrates chief financial analyst
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Here’s where the best job opportunities still exist

Even on the heels of the longest U.S. government shutdown in history, the labor market is thriving. “The job market is extremely competitive right now,” said Michelle Armer, chief people officer at CareerBuilder. In fact, last year there were more openings than there were people looking for jobs. The number of Americans filing applications for unemployment benefits surged to near a 1½-year high last week, which raises some concerns that the labor market will slow. Until then, there are still man


Even on the heels of the longest U.S. government shutdown in history, the labor market is thriving. “The job market is extremely competitive right now,” said Michelle Armer, chief people officer at CareerBuilder. In fact, last year there were more openings than there were people looking for jobs. The number of Americans filing applications for unemployment benefits surged to near a 1½-year high last week, which raises some concerns that the labor market will slow. Until then, there are still man
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Company: cnbc, Activity: cnbc, Date: 2019-02-01  Authors: jessica dickler, john w schoen
Keywords: news, cnbc, companies, heres, labor, unemployment, shutdown, exist, job, best, jobs, opportunities, market, work, looking, skills, hamrick


Here's where the best job opportunities still exist

Even on the heels of the longest U.S. government shutdown in history, the labor market is thriving.

“The job market is extremely competitive right now,” said Michelle Armer, chief people officer at CareerBuilder.

In fact, last year there were more openings than there were people looking for jobs. And employment in the private sector increased by a better-than-expected 213,000 jobs in January alone, despite the partial shutdown, according to ADP and Moody’s.

The unemployment rate ticked up to 4 percent in January, but still not far from its lowest point in five decades, according to the Labor Department.

But more people are also looking for work. The number of Americans filing applications for unemployment benefits surged to near a 1½-year high last week, which raises some concerns that the labor market will slow.

“We have to acknowledge that we are in the late innings of the economic expansion,” said Mark Hamrick, senior economic analyst at Bankrate.com. “But it’s a little like a party when the lights haven’t turned off yet; we have to enjoy it while we can.”

Until then, there are still many job opportunities out there, although not necessarily across the board — or across the nation.

“For most, it is a great time to look for work, particularly for those who have in-demand skills and work in locations where the regional economies are robust,” Hamrick said.

To make the most of today’s market, CareerBuilder identified the top three jobs in each state by wage category and the skills required to land those positions. (See the chart below.)


Company: cnbc, Activity: cnbc, Date: 2019-02-01  Authors: jessica dickler, john w schoen
Keywords: news, cnbc, companies, heres, labor, unemployment, shutdown, exist, job, best, jobs, opportunities, market, work, looking, skills, hamrick


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December jobs report: Growth is strong, but a slowdown may be coming

There’s more good news for those looking to change jobs in 2019, but the time to act is now. Overall, the economy remains in good shape for those looking for new opportunities, with 312,000 jobs added in December, according to the latest report released today by the Bureau of Labor Statistics. That number is actually higher than the roughly 176,000 jobs that economists had expected. He adds that while the current jobs report does provide some measure of comfort, job seekers should be mindful of


There’s more good news for those looking to change jobs in 2019, but the time to act is now. Overall, the economy remains in good shape for those looking for new opportunities, with 312,000 jobs added in December, according to the latest report released today by the Bureau of Labor Statistics. That number is actually higher than the roughly 176,000 jobs that economists had expected. He adds that while the current jobs report does provide some measure of comfort, job seekers should be mindful of
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Company: cnbc, Activity: cnbc, Date: 2019-01-04  Authors: courtney connley, jose luis pelaez, getty images, ben stansall
Keywords: news, cnbc, companies, good, growth, report, possible, looking, economy, job, 2019, coming, jobs, labor, strong, hamrick, slowdown


December jobs report: Growth is strong, but a slowdown may be coming

There’s more good news for those looking to change jobs in 2019, but the time to act is now.

Overall, the economy remains in good shape for those looking for new opportunities, with 312,000 jobs added in December, according to the latest report released today by the Bureau of Labor Statistics. That number is actually higher than the roughly 176,000 jobs that economists had expected.

Unemployment also rose from 3.7 percent to 3.9 percent, as more workers joined the labor force. Additionally, wages increased by 3.2 percent from a year ago, putting wage growth at a tie with October for the largest year-over-year increase since April 2009.

“When we look at the job market, it’s a bit of a counterpoint to the tremendous amount of volatility we see elsewhere in the economy, and essentially in society,” Bankrate.com senior economic analyst Mark Hamrick tells CNBC Make It.

He adds that while the current jobs report does provide some measure of comfort, job seekers should be mindful of a possible hiring slowdown due to risk factors like rising interest rates, trade war tensions and a low stock market.

Below, Hamrick and Glassdoor chief economist Andrew Chamberlain break down how you should best prepare for possible changes in 2019.


Company: cnbc, Activity: cnbc, Date: 2019-01-04  Authors: courtney connley, jose luis pelaez, getty images, ben stansall
Keywords: news, cnbc, companies, good, growth, report, possible, looking, economy, job, 2019, coming, jobs, labor, strong, hamrick, slowdown


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July jobs report: Good news for job-seekers without a degree

After two months of higher than expected gains, job growth for the month of July slowed a bit, with 157,000 jobs added to the economy, according to the most recent report released this morning by the Bureau of Labor Statistics. Unemployment fell from 4 percent to 3.9 percent, signaling that overall the market is still in good standing for job-seekers of all levels to find employment. But Bankrate.com senior economic analyst Mark Hamrick warns that while unemployment is still at a low, slow wage


After two months of higher than expected gains, job growth for the month of July slowed a bit, with 157,000 jobs added to the economy, according to the most recent report released this morning by the Bureau of Labor Statistics. Unemployment fell from 4 percent to 3.9 percent, signaling that overall the market is still in good standing for job-seekers of all levels to find employment. But Bankrate.com senior economic analyst Mark Hamrick warns that while unemployment is still at a low, slow wage
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Company: cnbc, Activity: cnbc, Date: 2018-08-03  Authors: courtney connley, bill pugliano, getty images
Keywords: news, cnbc, companies, growth, degree, wage, major, impact, hamrick, jobseekers, job, jobs, good, report, wages


July jobs report: Good news for job-seekers without a degree

After two months of higher than expected gains, job growth for the month of July slowed a bit, with 157,000 jobs added to the economy, according to the most recent report released this morning by the Bureau of Labor Statistics. That’s less than the 190,000 jobs economists had predicted for the month.

Unemployment fell from 4 percent to 3.9 percent, signaling that overall the market is still in good standing for job-seekers of all levels to find employment. But Bankrate.com senior economic analyst Mark Hamrick warns that while unemployment is still at a low, slow wage growth continues to be a major concern. In July, average hourly wages rose just 7 cents, keeping year-over-year gain the same at 2.7 percent.

“Right now, of paramount importance is wage growth,” he tells CNBC Make It. “It is sort of the ‘What have you done for me lately?’ scenario that employees are asking employers and the market.”

Aside from wages, Hamrick says a major concern for economists have is the impact increased tariffs and rising interest rates could have on business owners and loan borrowers today. Below, he breaks down how the July’s jobs report can impact you and your employer, and why now might be the best time for job-seekers without a degree to find a job.


Company: cnbc, Activity: cnbc, Date: 2018-08-03  Authors: courtney connley, bill pugliano, getty images
Keywords: news, cnbc, companies, growth, degree, wage, major, impact, hamrick, jobseekers, job, jobs, good, report, wages


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The 10 best states to retire in

There’s another list out of the best places to retire, this time by personal finance website Bankrate.com. Although a recent list in Business Insider called Florida the winner, and a ranking last year in Money Magazine crowned New Hampshire. For example, this new rating by Bankrate.com prioritized warmer places over colder ones, assuming retirees want to eschew harsh winters. “There are some people who want to see the leaves change,” said Mark Hamrick, senior economic analyst at Bankrate.com. “I


There’s another list out of the best places to retire, this time by personal finance website Bankrate.com. Although a recent list in Business Insider called Florida the winner, and a ranking last year in Money Magazine crowned New Hampshire. For example, this new rating by Bankrate.com prioritized warmer places over colder ones, assuming retirees want to eschew harsh winters. “There are some people who want to see the leaves change,” said Mark Hamrick, senior economic analyst at Bankrate.com. “I
The 10 best states to retire in Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-07-11  Authors: annie nova, john greim, lightrocket, getty images, carol polich photo workshops, mark ralston, davidbyronkeener, sean pavone, ellen creager, detroit free press
Keywords: news, cnbc, companies, places, winner, personal, website, list, hamrick, best, retire, states, york, youre, winters, wear


The 10 best states to retire in

There’s another list out of the best places to retire, this time by personal finance website Bankrate.com.

South Dakota came in first place.

Although a recent list in Business Insider called Florida the winner, and a ranking last year in Money Magazine crowned New Hampshire.

If you’re overwhelmed by the many listicles of where you should spend your golden years, remember to consider how much a destination meets your personal needs and tastes.

For example, this new rating by Bankrate.com prioritized warmer places over colder ones, assuming retirees want to eschew harsh winters. But some people like to wear a jacket, and not everyone wants endless sunshine. “There are some people who want to see the leaves change,” said Mark Hamrick, senior economic analyst at Bankrate.com.

Also, your lifestyle could vary dramatically in, say, Buffalo, New York versus Manhattan. “It’s a broad brush stroke when it comes to states,” Hamrick said.


Company: cnbc, Activity: cnbc, Date: 2018-07-11  Authors: annie nova, john greim, lightrocket, getty images, carol polich photo workshops, mark ralston, davidbyronkeener, sean pavone, ellen creager, detroit free press
Keywords: news, cnbc, companies, places, winner, personal, website, list, hamrick, best, retire, states, york, youre, winters, wear


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