Fed Sits Tight, But Inflation Creeps Higher: Smart Moves for Your Retirement

Hello and welcome,

This month’s headlines should grab the attention of every retiree. The Federal Reserve is holding rates steady while inflation inches up to 2.4%, and turbulence in the Middle East keeps energy prices—and market uncertainty—on the rise. For anyone planning for or living in retirement, these shifts have a direct impact on your income, portfolio, and day-to-day budget.

Fed Stands Pat, But Inflation Risks Linger

The Fed left its key rate unchanged at 4.25%–4.50% in June, with Chairman Powell saying, “We don’t think we need to be in a hurry.” That means yields on CDs and bonds may not budge, even as living costs grow. Meanwhile, the OECD warns that renewed tariffs could push inflation toward 4% by 2025, well above the target. For retirees, this makes it vital to track your cash reserves and review fixed income allocations to ensure they’re keeping pace with inflation.

Oil Spikes, Gold Swings: Time to Diversify?

Oil prices have jumped 5%, now topping $76 per barrel, after new threats to global supply arose from Iran. This is pushing household costs higher and fueling broader inflation worries. Gold, meanwhile, trades near $3,380/oz—caught between bullish predictions (Goldman: $3,700) and bearish warnings (Citi: below $3,000). Holding some gold or energy stocks may offer a hedge, but remember: forecasts are divided, and volatility is likely to continue.

Mortgage Rates and Spending: Proceed with Caution

With 30-year mortgage rates hovering near 7%, retirees considering refinancing or downsizing may want to act while rates hold steady. The recent slowdown in retail sales also signals a more cautious national mood—another cue to revisit your monthly budget and withdrawal plans.

Next Steps for Retirees

Here are three steps to consider now:

- Review your investment mix—look for inflation hedges like gold or energy.
- If home financing is in your future, keep a close watch on interest rates.
- Regularly reassess your cash flow and adjust for rising costs or potential market shocks.

It’s wise to consult a fiduciary advisor to tailor these strategies to your needs.

Bottom Line:

Uncertainty in today’s markets is a signal—not to panic, but to review, rebalance, and protect your nest egg. Staying vigilant now helps ensure peace of mind no matter what comes next.

Wishing you clarity and confidence in your investing journey,
The Wealth Money Catalyst Team