by Joshua Rodriguez
CBS News
Inflation has been a cause for concern for some time now. In fact, in mid-2022, the Federal Reserve increased its target federal funds rate for the first time since 2018 in response to high COVID-era inflation. Since then, it has increased its benchmark rate several times, pushing it to a 23-year high, where it still stands today.
Though inflation seemed to be dwindling toward the end of 2023, price growth has gained a second wind with inflation coming in hot thus far in 2024. And while high inflation rates may make budgeting more difficult and debt more expensive, they can also make returns on deposit accounts more attractive.
With the federal funds rate high, earnings on some deposit accounts can outpace inflation.