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CD rates today, November 17, 2024 (up to 4.50% APY)

17.11.2024 by admin

Today’s certificate of deposit (CD) interest rates are some of the highest we’ve seen in more than a decade thanks to several rate hikes by the Federal Reserve. However, the Fed finally cut its target rate in September, so now could be your last chance to lock in a competitive rate.

CD rates vary widely across financial institutions, so it’s important to ensure you’re getting the best rate possible when shopping around for a CD. The following is a breakdown of CD rates today and where to find the best offers.

Historically, longer-term CDs offered higher interest rates than shorter-term CDs. Generally, this is because banks would pay better rates to encourage savers to keep their money on deposit longer. However, in today’s economic climate, the opposite is true.

As of November 17, 2024, CD rates remain high by historical standards. However, the highest CD rates can be found for shorter terms of around one year or less.

Today, the highest CD rate is 4.50% APY, offered by Barclays Bank on its 6-month CD. There is no minimum opening deposit required.

Here is a look at some of the best CD rates available today from our verified partners:

The amount of interest you can earn from a CD depends on the annual percentage rate (APY). This is a measure of your total earnings after one year when considering the base interest rate and how often interest compounds (CD interest typically compounds daily or monthly).

Say you invest $1,000 in a one-year CD at 1.88% APY. At the end of that year, your balance would grow to $1,018.96 — your initial $1,000 deposit, plus $18.96 in interest.

Now let’s say you choose a one-year CD that offers 5% APY instead. In this case, your balance would grow to $1,051.16 over the same period, which includes $51.16 in interest.

The more you deposit in a CD, the more you stand to earn. If we took our same example of a one-year CD at 5% APY, but deposit $10,000, your total balance when the CD matures would be $10,511.62, meaning you’d earn $511.62 in interest.

Read more: What is a good CD rate?

When choosing a CD, the interest rate is usually top of mind. However, the rate isn’t the only factor you should consider. There are several types of CDs that offer different benefits, though you may need to accept a slightly lower interest rate in exchange for more flexibility. Here’s a look at some of the common types of CDs you can consider beyond traditional CDs:

Bump-up CD: This type of CD allows you to request a higher interest rate if your bank’s rates go up during the account’s term. However, you’re usually allowed to “bump up” your rate just once.
No-penalty CD: Also known as a liquid CD, type of CD gives you the option to withdraw your funds before maturity without paying a penalty.
Jumbo CD: These CDs require a higher minimum deposit (usually $100,000 or more), and often offer higher interest rate in return. In today’s CD rate environment, however, the difference between traditional and jumbo CD rates may not be much.
Brokered CD: As the name suggests, these CDs are purchased through a brokerage rather than directly from a bank. Brokered CDs can sometimes offer higher rates or more flexible terms, but they also carry more risk and might not be FDIC-insured.

$12.9 Billion of Warren Buffett's Portfolio Is Invested in 1 Stock That Could Soar 25%, According to Wall Street

17.11.2024 by admin

Warren Buffett once said, “Wall Street is the only place that people ride to in a Rolls Royce to get advice from those who take the subway.” It’s fair to say that Buffett doesn’t think too highly of Wall Street analysts’ opinions.

However, analysts think highly of some stocks that Buffett likes. As a case in point, $12.9 billion of Buffett’s Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) portfolio is invested in one stock that could soar 25% over the next 12 months, according to Wall Street.

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Buffett is shifting a lot more money into building Berkshire’s cash stockpile than he is buying stocks these days. However, there’s one stock he has consistently bought in nearly every quarter since early 2022: Occidental Petroleum (NYSE: OXY).

Occidental now ranks as the sixth-largest holding in Berkshire Hathaway’s portfolio. Berkshire’s stake in the U.S. oil and gas producer is worth roughly $12.9 billion at recent prices.

Buffett highlighted eight stocks in his latest letter to Berkshire Hathaway shareholders that he expects the conglomerate to own “indefinitely.” Occidental was in the group. And it was the only one he has continued to buy regularly.

Why does the legendary investor like Occidental so much? The company’s large oil and gas holdings in the U.S. stand at the top of the list. Buffett also likes Oxy’s carbon capture and storage initiatives. In addition, he admires and respects Occidental CEO Vicki Hollub. Buffett wrote in his annual shareholder letter that Hollub knows “how to separate oil from rock, and that’s an uncommon talent, valuable to her shareholders and to her country.”

Wall Street appears to be more bullish about Occidental Petroleum than any other stock in Berkshire’s portfolio. The average 12-month price target for the oil stock reflects an upside potential of around 25%. Even the lowest price target among the analysts surveyed by LSEG is 6.5% above Occidental’s current share price.

We only have to look to Occidental’s third-quarter results announced on Tuesday to understand some of the reasons behind analysts’ upbeat take on the stock. Oxy generated strong operating cash flow in Q3 of $3.8 billion. Adjusted earnings per share came in well above the consensus estimate. The company’s production also topped the midpoint of its guidance range.

Valuation is likely a key consideration for Wall Street as well. Occidental’s share price is 29% below its peak from earlier this year. The stock trades at a forward price-to-earnings ratio of 12.5 compared to a forward earnings multiple of 14.6 for the S&P 500 energy sector.

Granted, not all analysts are fans of Occidental. For example, Evercore ISI Group gave the stock an “underperform” rating on Sept. 30. Several analysts also recommend holding Occidental instead of buying the stock despite setting optimistic price targets.

I wouldn’t bet the farm that Occidental Petroleum’s share price will soar 25% over the next 12 months as the Wall Street consensus projects. The company’s fortunes depend heavily on oil prices — and there’s no way to know what oil prices will do in the near term.

That said, energy independence will almost certainly become more important over the next few years. Occidental’s domestic oil and gas holdings should increase in value. I’m cautiously optimistic about the prospects for the company’s carbon capture technology.

I also fully expect Buffett to keep buying Oxy stock. Berkshire currently owns 27.3% of the company. It obtained approval from the Federal Energy Regulatory Commission in 2022 to acquire up to 50% of Occidental. Buffett hinted at additional purchases in his shareholder letter earlier this year, writing that Berkshire owns warrants that give it the option “to materially increase our ownership at a fixed price.”

Buffett doesn’t care what Wall Street thinks about Occidental. But I suspect analysts’ upbeat views of the stock are warranted.

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Keith Speights has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy.

$12.9 Billion of Warren Buffett’s Portfolio Is Invested in 1 Stock That Could Soar 25%, According to Wall Street was originally published by The Motley Fool

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Money market account rates today, November 17, 2024 (best account provides 5.00% APY)

17.11.2024 by admin

Between March 2022 and July 2023, the Federal Reserve raised its benchmark rate 11 times. As a result, money market account (MMA) interest rates rose sharply.

However, the Fed slashed the federal funds rate by 50 basis points in September and another 25 basis points in November. So deposit rates — including money market account rates — have started falling. It’s more important than ever to compare MMA rates and ensure you earn as much as possible on your balance.

The national average money market account rate stands at 0.64%, according to the FDIC. This might not seem like much, but consider that just two years ago, it was just 0.23%, reflecting a sharp rise in a short period of time.

This is largely due to monetary policy decisions by the Fed, which began raising its benchmark rate in March 2022 to combat skyrocketing inflation. In fact, the Fed increased rates 11 times. But it finally cut its benchmark rate in September, causing deposit account rates to start dropping

Even so, some of the top accounts are currently offering upwards of 5% APY. Since these rates may not be around much longer, consider opening a money market account now to take advantage of today’s high rates.

Here’s a look at some of the top MMA rates available today:

Additionally, the table below features some of the best savings and money market account rates available today from our verified partners.

The amount of interest you can earn from a money market account depends on the annual percentage rate (APY). This is a measure of your total earnings after one year when considering the base interest rate and how often interest compounds (money market account interest typically compounds daily).

Say you put $1,000 in an MMA at the average interest rate of 0.64% with daily compounding. At the end of one year, your balance would grow to $1,006.42 — your initial $1,000 deposit, plus just $6.42 in interest.

Now let’s say you choose a high-yield money market account that offers 5% APY instead. In this case, your balance would grow to $1,051.27 over the same period, which includes $51.27 in interest.

The more you deposit in a money market account, the more you stand to earn. If we took our same example of a money market account at 5% APY, but deposit $10,000, your total balance after one year would be $10,512.67, meaning you’d earn $512.67 in interest.

Economics News

Trump's Return, Inflation Fears, And A Bold S&P 500 Prediction: This Week In Economics

17.11.2024 by admin

The past week has been a whirlwind of economic predictions and policy speculations, largely centered around President-elect Donald Trump’s potential second term. From Cathie Wood’s optimistic outlook to concerns about inflation and a bold S&P 500 prediction, here’s a recap of the top stories.

Cathie Wood’s Reagan-Era Economic Boom Prediction

Cathie Wood, CEO of ARK Investment Management LLC, has drawn parallels between Trump’s potential second term and the economic transformation during former President Ronald Reagan’s administration in the 1980s. Wood believes that Trump’s anticipated policies, including deregulation and tax cuts, could trigger significant economic growth.

Trump’s Policies Could Trigger Inflation

Despite Trump’s promises to lower prices for American consumers, economic experts warn that his proposed policies could trigger higher inflation. Key proposals raising concerns include a universal tariff of up to 20% on imports, mass deportation of undocumented immigrants, and tax cuts. Major retailers have already expressed concerns about potential price impacts.

Trump’s DOGE Plan: Risks and Opportunities

Trump’s proposed Department of Government Efficiency (DOGE), led by Elon Musk and Vivek Ramaswamy, is raising questions about the future of U.S. defense contractors and government IT firms. The plan to restructure federal agencies and reduce wasteful spending could potentially impact these sectors.

Producer Inflation Rises More Than Expected

October’s producer inflation came in slightly higher than anticipated, casting doubts on whether the U.S. economy’s broader disinflationary trend will hold through the year’s final quarter. The Producer Price Index (PPI) surged to 2.4% last month, marking the first increase in the annual PPI inflation rate after three straight months of declines.

S&P 500 to Hit 10,000 by 2029?

Veteran Wall Street strategist Ed Yardeni has made a bold prediction that the S&P 500 index will soar to 10,000 by the end of the decade. Yardeni believes that Trump’s return to the White House, alongside a likely Republican-controlled Congress, will bring in a major regime shift that’s positive for U.S. stocks, the economy, and corporate profits.

Market News and Data brought to you by Benzinga APIs

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Photo courtesy: Shutterstock

This story was generated using Benzinga Neuro and edited by Ananya Gairola

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The Stock Market Is Doing Something Witnessed Only 3 Times in 153 Years — and History Is Very Clear What Happens Next

17.11.2024 by admin

In case you haven’t noticed, the bulls are firmly in charge on Wall Street. Since 2024 began, the iconic Dow Jones Industrial Average (DJINDICES: ^DJI), broad-based S&P 500 (SNPINDEX: ^GSPC), and innovation-fueled Nasdaq Composite (NASDAQINDEX: ^IXIC) have respectively gained 17%, 26%, and 28% (as of the closing bell on Nov. 13) and ascended to multiple record-closing highs.

A number of factors are responsible for pushing Wall Street’s major stock indexes to new highs, including excitement for the artificial intelligence (AI) revolution, stock-split euphoria, and optimism for President-Elect Donald Trump’s second term in the Oval Office.

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But when things seem too good to be true on Wall Street, they usually are.

A person drawing an arrow to and circling the bottom of a very steep decline in a stock chart. — Image source: Getty Images.

Throughout the year, there have been an assortment of correlative events, forecasting tools, and data points that have warned of potential weakness in the U.S. economy and/or stock market. This includes the first notable decline in U.S. M2 money supply since the Great Depression, the longest yield-curve inversion in history, and the correlative performance of equities when the Federal Reserve shifts to a rate-easing cycle.

However, one historically flawless valuation metric stands head and shoulders above these other tools, and it’s doing something right now that’s only been observed three times in more than 150 years.

Most investors are probably familiar with or rely on the traditional price-to-earnings (P/E) ratio, which divides a company’s share price into its trailing-12-month earnings per share (EPS). The P/E ratio provides a relatively quick way to compare a company’s valuation to its peers or the broader market.

However, the traditional P/E ratio also has limitations. Specifically, it doesn’t work particularly well with growth stocks since it doesn’t factor in future growth rates, and it can be easily disrupted by shock events, such as the lockdowns that occurred during the early stages of the COVID-19 pandemic.

A considerably more encompassing valuation tool, and the metric currently making history, is the S&P 500’s Shiller P/E ratio, also referred to as the cyclically adjusted P/E ratio or CAPE Ratio. The Shiller P/E accounts for average inflation-adjusted EPS from the previous 10 years, which smooths out the impact of shock events and allows for apples-to-apples valuation comparisons looking back more than 150 years.

S&P 500 Shiller CAPE Ratio Chart — S&P 500 Shiller CAPE Ratio data by YCharts.

As of the closing bell on Nov. 13, the S&P 500’s Shiller P/E clocked in at 38.18, more than double its average reading of 17.17 when back-tested to January 1871.

But more importantly, the Shiller P/E ratio has reached a reading of 38 only three times during a bull market rally in 153 years. In December 1999, during the dot-com boom, the Shiller P/E peaked at a reading of 44.19. Meanwhile, in the first week of 2022, it very briefly lifted above 40.

What’s noteworthy is what’s happened to Wall Street’s major stock indexes following these prior periods when valuations became very clearly overextended to the upside. The dot-com bubble resulted in a peak-to-trough drop of 49% in the S&P 500 and a considerably steeper decline in the Nasdaq Composite. Meanwhile, the Dow Jones, S&P 500, and Nasdaq Composite entered respective bear markets in 2022.

Stepping back even further, there have been only six instances since 1871 when the Shiller P/E surpassed 30, including the present. Following each of the five prior occurrences, the Dow, S&P 500, and/or Nasdaq Composite eventually fell between 20% and 89%.

Although the Shiller P/E tells us nothing about when stock market corrections/bear markets might occur, thus far, it has a flawless track record of foreshadowing major moves lower in the stock market.

A smiling person reading a financial newspaper while seated at a table in their home. — Image source: Getty Images.

Based on what history tells us, at some point in the not-too-distant future, we’re going to see a pretty sizable move lower in the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite. But if you’re a long-term investor looking to the horizon, history has a message for you, as well: Perspective changes everything.

Over shorter time frames, predicting what the U.S. economy or stock market will do can be tricky, if not downright impossible. For example, recessions are a normal and inevitable part of the economic cycle. No matter how much we cross our fingers and think good thoughts, economic contractions are eventually going to occur.

But here’s the thing about recessions: They’re short-lived. If you take a step back and look at the bigger picture, you’ll see that nine out of 12 recessions following World War II resolved in less than a year, while the remaining three failed to surpass 18 months in length.

On the other end of the spectrum, two economic expansions have reached the 10-year mark since World War II ended. The point being that the U.S. economy spends considerably more time in the sun than navigating through a storm — but you have to take a step back to see this dynamic play out.

The same holds true on Wall Street.

The data set you see above was posted on social media platform X in June 2023 by the researchers at Bespoke Investment Group. It shows the calendar-day length of every bear and bull market in the benchmark S&P 500 dating back to the start of the Great Depression in September 1929.

As you’ll note from the table, the average S&P 500 bear market decline is only 286 calendar days, roughly 9.5 months. This is consistent with downturns in the U.S. economy resolving quickly.

On the other hand, the average S&P 500 bull market over 94 years has endured for 1,011 calendar days, which equates to around two years and nine months. Including the current bull market rally, just over half (14 out of 27) of all bull markets for the S&P 500 have lasted longer than the lengthiest bear market.

Even though stock market downturns are normal and inevitable, perspective demonstrates just how powerful patience can be for long-term investors.

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Amazon: if you invested $1,000 when we doubled down in 2010, you’d have $22,819!*
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*Stock Advisor returns as of November 11, 2024

Sean Williams has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The Stock Market Is Doing Something Witnessed Only 3 Times in 153 Years — and History Is Very Clear What Happens Next was originally published by The Motley Fool

Could Intel Stock Help You Become a Millionaire?

17.11.2024 by admin

Intel (NASDAQ: INTC) was once considered a stable long-term investment on the semiconductor market. But over the past 10 years, the chipmaker’s stock declined 26%. Even with reinvested dividends, it delivered a negative total return of 4%.

During the same period, the S&P 500 rallied 192% and generated a total return of 250%. AMD‘s (NASDAQ: AMD) stock soared a whopping 5,220%. Let’s see why Intel’s stock withered — and if it has the potential to bounce back and generate millionaire-making gains in the future.

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An abstract illustration of a semiconductor. — Image source: Getty Images.

Intel is still the world’s largest producer of x86 central processing units (CPUs) for PCs and servers. But according to PassMark Software, Intel’s share of the x86 CPU market shrank from 82.2% to 61% between the fourth quarters of 2016 and 2024. AMD’s share doubled from 17.8% to 35.7%.

Intel ceded the market to AMD as it grappled with production delays, chip shortages, and shifting strategies under three different CEOs. Intel manufactures most of its chips at its first-party foundries, but AMD outsources all of its production to third-party foundries like TSMC and Samsung.

Over the past few years, Intel fell behind TSMC and Samsung in the “process race” to manufacture smaller, denser, and more power-efficient chips. Intel’s problems started with a difficult transition from 14nm to 10nm chips (2017-2020), then worsened with even more delays in its subsequent transition to 7nm chips (2020-2023). As Intel tripped over its own feet, AMD developed a new generation of Ryzen CPUs for PCs and Epyc CPUs for servers. TSMC pumped out those chips on schedule, and many of Intel’s longtime customers started to pivot toward AMD’s chips instead.

Intel also failed to gain a foothold in the mobile chip market, and its CPUs became less relevant than Nvidia‘s graphics processing units (GPUs) in the booming AI market. Missing those two key technological shifts indicated Intel had lost its edge in the chipmaking market.

Pat Gelsinger, who became Intel’s CEO in 2021, initially dismissed the idea that it needed to follow AMD’s lead, divest its foundries, and become a “fabless” chipmaker. Instead, Gelsinger doubled down on expanding Intel’s foundries, chased government subsidies, and claimed it could catch TSMC by 2025.

But at the same time, Intel quietly outsourced some of its production to TSMC to alleviate the pressure on its first-party foundries. Even with that assistance, Intel struggled to ramp up its production of its newest Meteor Lake chips over the past year as development of new AI-driven CPUs compressed its gross margins.

As Intel grappled with all of those problems, it executed big layoffs, divested non-core businesses and investments, and even suspended its dividend in August. In September, the company announced it would spin off its foundry unit into an independent subsidiary and sell part of Altera, the programmable chipmaker it acquired in 2015. All those moves suggested that Intel was shrinking its business to survive instead of trying to surpass TSMC and Samsung.

From 2018 to 2023, Intel’s annual revenue fell from $70.8 billion to $54.2 billion as its earnings per share (EPS) plunged from $4.48 to $0.40. Those declines can be attributed to its market share losses to AMD, the softness of the PC market, and the company’s ongoing divestments.

But from 2023 to 2026, analysts expect Intel’s revenue and EPS to grow at a compound annual growth rate (CAGR) of 4% and 29%, respectively. That recovery could be driven by the stabilization of the PC market, rising chip yields, and its sweeping efforts to reduce expenses by more than $10 billion in 2025.

At $25, Intel already trades at 29 times its projected earnings for 2026. AMD, which is growing a lot faster and faces fewer headwinds, trades at 31 times its 2026 earnings. With those valuations, it’s hard to see why anyone would pick Intel over AMD right now.

In a best-case scenario, Intel’s sales and profits could stabilize as it rolls out new chips, its cash flow could stay positive, and it could reinstate its dividend. If the company checks those boxes, it could become a stable blue chip dividend play again. However, I don’t see Intel’s stock doubling or tripling over the next few years. It’s clearly a mature tech stock that faces an existential crisis — not a hypergrowth company that can deliver millionaire-maker gains over the next decade.

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

Amazon: if you invested $1,000 when we doubled down in 2010, you’d have $22,819!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $42,611!*
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $444,355!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

See 3 “Double Down” stocks »

*Stock Advisor returns as of November 11, 2024

Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Intel, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: short November 2024 $24 calls on Intel. The Motley Fool has a disclosure policy.

Could Intel Stock Help You Become a Millionaire? was originally published by The Motley Fool

Trump's win means low taxes, stock market gains, and economic growth – for now

17.11.2024 by admin

In the wee hours of November 6 when the U.S. presidential race was called for Donald T r ump, many Americans made a prediction, some advisers say: A Trump victory means lower taxes are here to stay.

For the past year, many Americans were bracing for the expiration of the 2017 Tax Cuts and Jobs Act (TCJA), also known as the Trump tax cuts. TCJA was the largest overhaul of the tax code in 30 years. It included widespread tax reductions for businesses and individuals. Many of the benefits for individuals, including lower tax rates for nearly all Americans, expire at the end of 2025.

Now that Trump’s returning to the White House with a majority in both congressional chambers, advisers say TCJA’s likely to get extended.

“There was a little bit of relief with our clients, especially those who didn’t necessarily want him to win or vote for him,” said Daniel Milan, managing partner at Cornerstone Financial Services in Southfield, Michigan. “It’s almost to make themselves feel better about (Vice President Kamala Harris’) loss. It’s self-soothing, in a sense.”

Those considering a mini retirement need to look at tax strategies for the year(s) when their earnings will be less

Potentially stronger investment portfolios and economy, at least in the short term: Americans have already seen their 401(k) and other stock market investments soar, partly on expectations Trump will keep corporate tax rates low and possibly, even lower them further, some advisers said. The blue-chip Dow and broad S&P 500 indexes surged to record highs the day after the election and have remained strong.

“Companies that delayed investment spending on election/regulatory uncertainty may now be prepared to start putting money to work,” wrote chief international economist James Knightley and Dutch Bank ING in a report.

That should bode well for corporate profits and economic growth, economists said.

Scott Anderson, chief U.S. economist at BMO Economics bumped up his 2025 economic growth forecast to about 2.2% from 1.9%. “The Trump victory is likely to at least temporarily bolster consumer and business confidence as well as stock market performance,” he said.

Lower tax rates. One of the most significant changes for most Americans included lower income tax rates. The top rate fell from 39.6% to 37%, the 33% bracket dropped to 32%, the 28% bracket dipped to 24%, the 25% bracket slid to 22%, and the 15% bracket fell to 12%. The lowest bracket remained at 10%, and the 35% tax bracket was unchanged. If the income tax cuts aren’t extended, the affected brackets will revert to pre-TCJA levels.

With Trump’s win, “there’s renewed confidence these will be extended or become permanent tax cuts,” Milan said. “This is good news for our finances.”

With income tax rates expected to stay low, Americans don’t have to feel rushed to do Roth IRA conversions, said Jim Czerniak, chief investment officer at Ambassador Wealth Management in Warrenville, Illinois.

A Roth conversion moves a traditional pre-tax IRA, SEP IRA, SIMPLE IRA, or 401(k) into a Roth IRA. People pay income tax on the converted amount but can take tax-free withdrawals later. Roth IRAs also aren’t subject to required minimum distributions.

Estate planning: High net worth individuals also don’t have to rush to give away their assets to protect them from taxes, advisers said. The TCJA doubled the federal lifetime gift tax exemption amount and annually indexed for inflation. In 2024, each individual has a combined federal estate and gift tax exemption of $13.61 million dollars. At the end of 2025, that exemption would have halved again.

“That was a top priority for clients, but the election basically made those conversations a moot point,” Milan said.

Completing the picture: Who has Trump picked for his Cabinet so far? Marco Rubio, Matt Gaetz among latest nominees

The biggest downside is adding to the ballooning budget deficit, but that pain may not be immediately apparent, economists and advisers said.

The nonpartisan, non-profit organization Committee for a Responsible Federal Budget estimates full extension of the Trump tax cuts could increase the federal deficit by $4 trillion to $5 trillion over ten years.

A rapidly increasing deficit could boost inflation and long-term interest rates, economists said. That could mean the costs of groceries, rent and services spike again, and that it becomes more expensive for businesses and individuals to borrow.

“Theoretically, the Fed may need to put its easing cycle on hold prematurely, or even reverse it, if inflation gets out of hand,” Anderson said. “But again, this is more of a 2026 story than a 2025 one.”

Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday morning.

This article originally appeared on USA TODAY: Trump, Republican victories ease Americans’ looming tax hike fears