Potential advantages of the changing rate environment
How are banking products impacted by the Fed Funds rate?
David Mook, Chief Private Banking Officer, U.S. Bank Wealth Management, shares his thoughts on the potential impact of a Fed Funds rate adjustment on your banking products. Watch video>
Cash tends to become a more visible component in a portfolio during times of elevated market volatility and economic uncertainty. But one possible downside is that yields on very liquid assets are generally low, which can potentially erode purchasing power if the yield earned is lower than the current inflation rate.